Advertisements
Advertisements
Questions
Define the following term:
Cash Reserve Ratio.
What is cash reserve ratio?
What is meant by cash reserve ratio?
Solution
Cash Reserve Ratio (CRR) is a certain minimum percentage of deposits that commercial bank and has to keep as reserves with the central bank.
APPEARS IN
RELATED QUESTIONS
Define bank rate.
Briefly explain two qualitative methods of credit control adopted by this institution.
Which of the following is a selective/qualitative method of credit control.
The central bank controls credit _____ .
______ is a quantitative method of credit control.
Which of the following is not a quantitative method of credit control?
In order to encourage investment in the economy, the central bank may ______.
The process of buying and selling of securities by the central bank of a country is known as ______.
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 :
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Bank rate is a quantitative instrument of monetary policy.
Reason (R): During inflation, RBI reduces the bank rate.
Differentiate between quantitative and qualitative methods of credit control.
Define the following term:
Margin Requirements.
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.
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?
What is meant by Legal Reserve Ratio?
Give an example of margin requirements.
