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प्रश्न
Explain how ‘bank rate' is helpful in controlling credit creation?
उत्तर
Bank rate is the rate at which the central bank provides credit to commercial banks. An increase or decrease in the bank rate leads to an increase or decrease in the market rate of interest. Thereby the cost of credit changes in the market. During inflation, increase in the bank rate increases the cost of capital which reduces the flow of credit.
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संबंधित प्रश्न
Explain how open market operations are helpful in controlling credit creation.
Explain how 'margin requirements' are helpful in controlling credit creation?
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Explain qualitative meansures of credit contorl adopted by the Central Bank.
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Clearing house
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Due to clearing house of the Central Bank cash money is saved.
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Credit rationing is quantitative credit control measure of Central bank.
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Quantitative Credit Control Measures and Qualitative Credit Control Measures
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Issuing Directives
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Central Bank's measure of regulation of consumer credit
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What are the various measures of qualitative credit control?
Distinguish between 'Qualitative and Quantitative tools' of credit control as may be used by a Central Bank.
Differentiate between Cash Credit and Outright Loans.
Identify the correctly matched items from Column A to that of Column B:
| Column A | Column B | ||
| 1 | Issue of New Currency Notes | (a) | Government of India |
| 2 | Banker to the Government | (b) | State Bank of India |
| 3 | Controller of Credit | (c) | Reserve Bank of India |
| 4 | SLR | (d) | Development Bank |
