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प्रश्न
To ensure that the citizens of the country have faith in the currency, the currency is issued by:
पर्याय
Commercial banks
Central government
Central bank
Ministry of finance
उत्तर
Central bank
Explanation:
- The currency issue is the responsibility of a country's central bank (in India, the Reserve Bank of India).
- The central bank guarantees that citizens have faith in the currency by maintaining its honesty and stability.
- The central bank's currency is government-backed, but the central bank is responsible for issuing it, not commercial banks or the Ministry of Finance.
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संबंधित प्रश्न
Explain the credit creation role of commercial banks with the help of a numerical example.
Explain the concept of ‘inflationary gap’. Also explain the role of ‘legal reserves’ in reducing it.
______ is the main source of money supply in an economy.
Banks are able to create credit many times more than initial deposits through ______.
Access to adequate and timely credit at affordable rates is critical for the rural poor to alleviate high cost debt and invest in livelihood opportunities. Despite the Government of India's best efforts, financial inclusion of the rural poor has been beset with multiple challenges. Lack of adequate banking infrastructure and human resources in rural areas, unplanned expansion leading to unviable bank branches and low levels of financial literacy amongst the rural populace have been some of the key challenges.
The most vulnerable communities, who often had no formal credit history or ability to provide collateral, have often been the worst affected. Inability to access loans from banks meant that the poorest had to resort to moneylenders for loans at unreasonably high rates of interest that invariably led them into a toxic debt trap.
In this context, the SHG-Bank Linkage programme, formalised by the National Bank for Agriculture and Rural Development (NABARD) in 1995, synthesizes 'formal financial systems' (in terms of a formal institution providing credit) with the 'informal sector' (comprising of rural poor with no formal credit history), has emerged as a preferred vehicle for providing financial services to the hitherto unbanked poor.
Community Based Repayment Mechanisms (CBRMs) have been institutionalised at branches involved in financing SHGs to monitor and ensure timely repayment of loans by SHGs. The number of SHGs with outstanding bank loans stands at nearly 5 million today, implying that the program has brought formal banking services to over 50 million women.
What could be the main reason for the institutionalization of Community Based Repayment Mechanisms (CBRMs)?
Read the given extract carefully and answer the following questions.
| Mr. X wanted to buy an expensive motorcycle for his son but he did not have sufficient money to buy it. He approached a public sector commercial bank for the loan. The bank asked Mr. X to deposit 20% cash of the loan amount and rest 80% of the loan amount was given by the bank. |
- Briefly explain a Commercial Bank.
- What is the regulation of consumer credit in selective credit control?
- Name the bank which controls all the commercial banks and financial institutions in the country.
Match the following and select the correct option.
| Column A | Column B | ||
| (i) | A deposit created by a customer | A. | Term deposit |
| (ii) | A deposit created by bank when loan is granted | B. | Demand deposits |
| (iii) | Deposits payable by bank on demand | C. | Initial deposit |
| (iv) | Deposits the amount of which can be withdrawn only after a fixed period of time | D. | Secondary deposit |
Which of these banks formulates the credit control tools?
How money multiplier is related to Legal Reserve Ratio?
Why are the banks required to keep only a fraction of deposits as cash reserves?
