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प्रश्न
Explain with reasons, whether you agree or disagree with the following statement
Cash reserve ratio is a quantitative measure of credit control.
उत्तर
Yes, we agree with the statement. Cash reserve ratio is one of the quantitative measures of credit control of the central bank. Quantitative measures are the ones which affect the volume or quantity of credit in the country. Cash reserve ratio refers to the minimum proportion of the total deposits that the commercial banks have to maintain with the central bank in form of reserves. Generally, C.R.R. can vary within a range of 3% to 15% of the total demand and time deposits available with the banks. An increase in the cash reserve ratio would imply that banks are required to keep a greater portion in form of deposits with the central bank. This, in turn, implies that the commercial banks are left with a lesser amount of funds to lend out. Hence, the lending capacity of the banks is reduced, leading to falling in the money supply. On the contrary, a fall in the cash reserve ration will lead to an increase in the money supply. Thus, in this way, C.R.R. becomes an effective quantitative measure of credit control.
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संबंधित प्रश्न
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Bank Rate.
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Define or explain the following concepts.
Clearing house
Match the following Group ‘A’ with Group ‘B’ :
|
Group ‘A’ |
Group ‘B’ |
||
| (a) |
Economics | (1) | not steady |
| (b) |
Reward of capital | (2) | 1 April, 1935 |
| (c) |
Value of money | (3) | Social science |
| (d) |
Establishment of Central Bank | (4) | Income from commodity tax |
| (e) | Sales tax | (5) | Natural science |
| (6) | Interest |
||
| (7) | 1 April, 1939 | ||
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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 |
