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प्रश्न
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Increase in cash reserve ratio adversely affects the capacity of commercial banks to create credit.
Reason (R): An increase in cash reserve ratio reduces the excess reserves of commercial banks and hence limits their credit creating power.
विकल्प
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
Both Assertion (A) and Reason (R) are true and Reason (R) is not the correct explanation of Assertion (A).
Assertion (A) is true but Reason (R) is false.
Assertion (A) is false but Reason (R) is true.
उत्तर
Both Assertion (A) and Reason (R) are true and Reason (R) is the correct explanation of Assertion (A).
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संबंधित प्रश्न
Which of the following is a selective/qualitative method of credit control.
______ is a quantitative method of credit control.
The process of buying and selling of securities by the central bank of a country is known as ______.
Define the following term:
Open Market Operations.
Differentiate between quantitative and qualitative methods of credit control.
Central bank is the lender of the last resort. Explain.
Explain the following function of the central bank of a country.
Fixation of margin requirement on secured loans.
What is this policy called that controls the credit supply in an economy?
What do you mean by credit control?
What are quantitative methods of credit control?
