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प्रश्न
During deflation, the Central Bank usually ______.
पर्याय
Increases CRR
Increases SLR
Increases bank rate
Increases buying Government Securities
उत्तर
During deflation, the Central Bank usually increases buying Government Securities.
Explanation:
During deflation, the central bank works to raise the money supply in the economy, hence increasing the demand for products. This is only conceivable if Increases buying Government Securities is chosen, which involves increasing the money supply by purchasing government assets on the market.
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संबंधित प्रश्न
Define qualitative credit control policy of the RBI.
Which of the following is not a quantitative method of credit control?
In order to encourage investment in the economy, the central bank may ______.
State the impact of an increase in Cash Reserve Ratio on loanable funds.
Define the following term:
Cash Reserve Ratio.
Define the following term:
Margin Requirements.
Briefly explain the following credit control methods adopted by the Central Bank.
Moral persuasion
What do you mean by credit control?
What is meant by Legal Reserve Ratio?
Describe two quantitative credit control measures of the Central Bank.
