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प्रश्न
The central bank can increase availability of credit by: (Choose the correct alternative)
(a) Raising repo rate
(b) Raising reverse repo rate
(c) Buying government securities
(d) Selling government securities
उत्तर
Buying government securities
The central bank buys government securities from the public through the banks. This results in the transfer of money form Central bank to the commercial banks and increases the credit creation capacity of the commercial banks. Hence, the central Bank can increase availability of credit by buying the government securities.
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संबंधित प्रश्न
The RBI was nationalised in the year 1935.
There is no difference between the Central bank and a commercial bank.
Explain the role of the Reserve Bank of India as the “lender of last resort”.
Match the following Group ‘A’ with Group ‘B’
| Group A | Group B |
| (a) Electricity | (1) Inelastic demand |
| (b) Complementary goods | (2) Share brokers |
| (c) Pension | (3) Elastic demand |
| (d) D - mat account | (4) Composite demand |
| (e) Central Bank | 5) Transfer income |
| (6) Primary function of Commercial Banks | |
| (7) ATM facility | |
|
(8) Apex banking institution
|
Give reason or explain the following statement:
Central Bank acts as a lender of the last resort.
Match the following:
| Group A | Group B |
| a. Demand and Price | (1) Interest |
| b. Stock | (2) Stock |
| c. Reward of Capital | (3) Reserve Bank of India |
| d. Unemployment allowance | (4) Bank of India |
| e. Central Bank | (5) Direct relation |
| (6) Potential Supply | |
| (7) Transfer Income | |
| (8) Inverse relation |
Fill in the blanks using proper alternatives given in the bracket
____________ bank has the monopoly of note issue.
State whether the following statements are True or False:
Central Bank acts as a lender of the last resort.
Define or explain the concept of Lender of the last resort .
Rewrite the following sentences by using proper substitute given in the bracket:
__________ has monopoly to issue the currency notes.
Fill in the blank with appropriate alternatives given below
____________ is the apex body of the monetary and banking systems of the nation's economy.
Give reason or explain.
As a banker to the government, the Central Bank transfers government funds.
Write short note on:
Definition of a Central Bank
State with reason whether you agree or disagree with the following statement.
Central Bank is a profit-making institution.
Fill in the blank using appropriate alternatives given below
The e - banking facility is provided through _________
In order to encourage investment in the economy, the Central Bank may ______.
Choose the Correct Answer.
The Central bank of India is ______
Choose the Correct Answer.
Which of the following is not a function of a central bank?
