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प्रश्न
Identify the following Credit Control measures undertaken by the Central Bank during inflation.
The Central Bank increases the rate at which it lends to the Commercial Bank.
उत्तर
Increasing the lending rate to commercial banks is referred to as increasing the Bank Rate. By increasing the bank rate, the cost of borrowing for commercial banks rises, leading to higher lending costs for businesses and consumers. This reduces the effects of inflation.
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संबंधित प्रश्न
Briefly explain two qualitative methods of credit control adopted by this institution.
The central bank controls credit _____ .
Which of the following is not a quantitative method of credit control?
Bank rate is the rate at which:
During inflation, the central bank usually:
Define the following term:
Open Market Operations.
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
What is this policy called that controls the credit supply in an economy?
What is meant by Legal Reserve Ratio?
Describe two quantitative credit control measures of the Central Bank.
