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प्रश्न
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
उत्तर
As a custodian of the cash reserves of the commercial banks, the central bank maintains the cash reserves of the commercial banks. Every commercial bank has to keep a certain percentage of its cash reserves with the central bank by law.
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संबंधित प्रश्न
Explain how credit rationing helps to control credit in an economy.
During deflation, the Central Bank usually ______.
Which of the following is not a quantitative method of credit control?
The process of buying and selling of securities by the central bank of a country is known as ______.
During inflation, the central bank usually:
Define the following term:
Margin Requirements.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
Which of the following statements are correct and which are incorrect? Give reasons.
- Central bank is a currency authority.
- Bank rate is a qualitative method of credit control.
- Quantitative methods regulate direction of credit.
- Bank rate is the rate at which commercial banks give loans to the public.
- Central bank should sell government securities when credit is to be expanded.
What is this policy called that controls the credit supply in an economy?
What is meant by Legal Reserve Ratio?
