Evolution of Money
Money was not always the same as we see it today. It has taken many years of innovations to reach the present form of money. Here is a brief overview of the main stages of money development:
Money was not always the same as we see it today. It has taken many years of innovations to reach the present form of money. Here is a brief overview of the main stages of money development:
Rationing of credit as a qualitative instrument of credit control is a method used by the central bank to limit the amount and purpose of credit granted by commercial banks and other financial institutions to certain sectors or industries, according to the economic priorities and objectives of the central bank. Rationing of credit can be …
Moral suasion as a qualitative instrument of credit control is a method used by the central bank to influence the lending behaviour of commercial banks and other financial institutions by using its moral authority and persuasive power, rather than legal or regulatory means. Moral suasion involves the central bank issuing advice, suggestions, requests and appeals …
Margin requirements refer to the difference between the current value of the security offered for loan (called collateral) and the value of loan granted. For example, mortgaging land for Rs 100 lakh with the bank for a loan of Rs 75 lakh would have a margin requirement of Rs 25 lakh. Margin requirements are a …
The functions of commercial banks in India are:
The central bank of a country is the institution that is responsible for managing the money supply, interest rates, and financial stability of the economy. The central bank of India is the Reserve Bank of India (RBI), which was established in 1935. The RBI performs various functions to achieve its objectives of economic growth, price …
Quantitative and qualitative methods of credit control are two types of instruments used by the central bank of a country to regulate the money supply and interest rates in the economy. Here are some points to explain them: Quantitative Methods Qualitative Methods
Reverse repo rate is a term used in the banking and financial sector. It is related to the monetary policy of a country, which is the way the central bank manages the money supply and interest rates in the economy. Reverse repo rate is the opposite of repo rate. It is the interest rate which …
Bank rate is an important concept in economics that affects the interest rates, money supply, inflation, and growth in a country. What is bank rate? Bank rate is the interest rate at which the central bank of a country lends money to commercial banks. For example, in India, the central bank is the Reserve Bank …
Repo rate is the interest rate that the central bank of a country charges from the commercial banks when they borrow money from it. Repo rate is also called repurchase rate, which means that the commercial banks have to repurchase or buy back the securities that they sell to the central bank as collateral for …