Question : _____________________ refers to a method in which the central bank gives direction to other banks to give or not to give credit for certain purpose to particular sectors.
Option 1: Selective credit controls
Option 2: Open market operations
Option 3: Bank rate
Option 4: Repo rate
Correct Answer: Selective credit controls
Solution : Selective credit control refers to a method in which the central bank gives direction to other banks to give or not to give credit for certain purpose to particular sectors. Hence, Option A is correct.
Question : ____________________ refers to sale and purchase of securities in the open market by the central bank.
Question : ________________ is the rate at which the central bank lends money to commercial banks to meet their long term needs.
Question : ____________ is the rate at which the central bank lends money to commercial banks to meet their short term needs.
Question : __________________ refers to difference between the market value of security offered and the value of amount lent.
Question : The rate at which RBI gives short-term loans to commercial banks is called:
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