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प्रश्न
What is this policy called that controls the credit supply in an economy?
उत्तर
- Monetary policy refers to the policy that manages an economy's credit supply.
- The central bank uses this policy to regulate the money supply, limit inflation, stabilise the currency, and affect interest rates, all of which contribute to economic activity and financial stability.
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संबंधित प्रश्न
During deflation, the Central Bank usually ______.
Observe the relationship of the first pair of words and complete the second pair.
Quantitative method of credit control by the central bank : Bank rate.
Quantitative method of credit control by the central bank :
Define the term Statutory Liquidity Ratio.
Define the following term:
Cash Reserve Ratio.
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.
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.
What do you mean by credit control?
What are quantitative methods of credit control?
Describe two quantitative credit control measures of the Central Bank.
