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प्रश्न
The process of buying and selling of securities by the central bank of a country is known as ______.
पर्याय
Margin Requirement
Open Market Operations
Cash Reserve Ratio
Statutory Liquidity Ratio
उत्तर
The process of buying and selling of securities by the central bank of a country is known as Open Market Operations.
Explanation:
Open Market Operations (OMO) is when the central bank buys and sells government assets in the open market to control the economy's money supply. When the central bank buys assets, it adds money to the banking system, improving liquidity. When it sells securities, it removes funds from the system, lowering liquidity.
संबंधित प्रश्न
Define bank rate.
Which of the following is a selective/qualitative method of credit control.
Define qualitative credit control policy of the RBI.
Explain how credit rationing helps to control credit in an economy.
Which of the following is not a quantitative method of credit control?
During inflation, the central bank usually:
Differentiate between quantitative and qualitative methods of credit control.
Define the following term:
Margin Requirements.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
Explain the following function of the central bank of a country.
Fixation of margin requirement on secured loans.
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.
Who controls the credit supply in an economy?
Identify the following Credit Control measure undertaken by the Central Bank during inflation.
The Central Bank sells government approved securities to the public.
What are quantitative methods of credit control?
Which are qualitative methods of credit control?
Define moral persuasion.
