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प्रश्न
What is meant by Legal Reserve Ratio?
उत्तर
- Legal Reserve Ratio (LRR) is the minimum ratio of deposits, legally required to be kept as cash reserves.
- The LRR is fixed by the Central Bank.
संबंधित प्रश्न
Briefly explain two qualitative methods of credit control adopted by this institution.
The central bank controls credit _____ .
In order to encourage investment in the economy, the central bank may ______.
The process of buying and selling of securities by the central bank of a country is known as ______.
During inflation, the central bank usually:
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.
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Bank rate is a quantitative instrument of monetary policy.
Reason (R): During inflation, RBI reduces the bank rate.
Give any two reasons as to why a country needs a central bank.
Define the following term:
Open Market Operations.
Define the following term:
Margin Requirements.
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
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?
Identify the following Credit Control measure undertaken by the Central Bank during inflation.
The Central Bank sells government approved securities to the public.
What do you mean by credit control?
What are quantitative methods of credit control?
Give an example of margin requirements.
