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प्रश्न
Which of the following is a selective/qualitative method of credit control.
पर्याय
Bank Rate
Cash Credit Ratio
Open Market Operations
Moral suasion
उत्तर
Moral suasion
Explanation:
The Central Bank employs a qualitative form of credit regulation known as moral suasion. It refers to the counsel, suggestions, and persuasion that the Central Bank uses to persuade member banks to obey its, directives to restrict credit supply. The RBI is making a moral appeal to commercial banks, encouraging them to refrain from certain types of loan operations.
संबंधित प्रश्न
The rate of which commercial banks borrow from the Central Bank is the:
Explain how credit rationing helps to control credit in an economy.
In order to encourage investment in the economy, the central bank may ______.
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | A rate of interest at which the central bank (RBI) lends money to member commercial banks to meet they long term needs. | A. | Cash Reserve Ratio |
| (ii) | A rate of interest at which RBI lends money to commercial banks to meet their short term needs. | B. | Statutory liquidity ratio |
| (iii) | A minimum percentage of total deposits kept by banks with the Central Bank. | C. | Repo rate |
| (iv) | A minimum percentage of total deposits to be kept by banks inform of liquid assets with themselves. | D. | Bank rate |
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 :
Differentiate between quantitative and qualitative methods of credit control.
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 are quantitative methods of credit control?
What is meant by Legal Reserve Ratio?
Give an example of margin requirements.
