BANKING GENERAL KNOWLEDGE
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
These days RBI uses Selective credit control measures rather infrequently because of:
|
|
Deregulation of functions
|
|
|
Autonomy given to banks
|
|
|
Comfortable liquidity
|
|
|
All the above
|
Explanation:
Detailed explanation-1: -Bank rate is the selective credit control measure used by the central bank of the country.
Detailed explanation-2: -Selective credit controls are intended to encourage or discourage specific types of investment and expenditure by influencing the lending policy of banks and similar credit institutions.
Detailed explanation-3: -Qualitative or selective credit control measures are used to regulate the flow of credit. These include Margin Requirements, Consumer Credit Regulation, Rationing of credit, Moral Suasion etc.
Detailed explanation-4: -Credit rationing is a selective qualitative credit control method.
There is 1 question to complete.