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What are the ways the central bank can control the activities of the commercial bank?
explain four ways in which the central bank esercises control over commercial banks
What are monetary measures adopted by central bank to curb inflation?
(A). Monetary measures: Monetary measures relate to the control in the supply and circulation of money in the country. 1. Bank rate policy: In case of inflation, the bank rate is increased; the supply of money is controlled. 2. Open market operation: During inflation, the central bank sells govt. securities and price bonds in the open market in order to contract the supply of money. 3. Variable reserve ratio: In order to control inflation, the central bank increases thereservation. 4. Credit Rationing: When there is inflationary pressure, the state bank adopts the policy of credit rationing. (B). Fiscal Measures: Measures in connection with public borrowing, public expenditures and public revenues are called fiscal measures. 1. Public Borrowing: During inflation, increase the public borrowing, during deflation, decrease in public borrowing. 2. Public Revenues: In order to control inflation, the increase in public revenues by the Govt. 3. Public expenditures: Inflation is also controlled by decreasing the public expenditures by the Govt. (C). Realistic Measures: 1. Increase the supply of goods and services: When the supply of goods and services is increased, the prices will come down. 2. Population planning: Control on population by adopting different measures of family planning will reduce the demand and finally prices will be controlled. 3. Price control policy: The govt. should adopt strict price control policy against the profiteers and hoarders. 4. Economic Planning: Effective economic planning is necessary to control the inflation in the country.
If parent has control over bank account how do you get your money?
Ask you parent for it - you will probably need to explain what you want to use it for and they may say no.
How does monetary policy control the money supply?
through quantitative measures like CRR , Bank Rate Policy and Open Market Operations and Qualitative measures like Moral Suasion, Marginal Safety Requirements, Rationing Credit etc
What is the basis of central bank why they control the flow of money?
The central bank uses 9 measures to control flow (credit flow) of money. It is divided into two QAUNTITATIVE MEASURES AND QUALITATIVE MEASURES. In quantitative measures,central bank give re-discounting facilities to there member banks(commercial bank).1)Central bank give BANK RATE.when central bank increases bank rate,commercial may increase the rate of interest on borrowing and this will discourage business man to borrow money and investment will also decreases.2)Open market operation in which buying and selling of securities.3)veriable reserve ratio in which central bank ask to keep CRR at the rate of 6% and SLR(statutory liquid ratio) at 24% with them self. In qualitative measures, central bank provide money to selected member banks and discard to banks who are responsible for unstable functioning of economy.1)Rationing credit. 2)Direct action. 3)Minimum secondary reserve ratio. 3)Regulation on consumer credit. 4)changes in MARGIN REQUIREMENT on securities loan. 5)moral suasion and publicity.
How do you fly the Wright brother's plane?
it is kind of hard to explain but there were to handles that you had to churn and you went down a ramp that helped you take off. Turns were made by twisting the wings to reduce lift. This technique was called wing warping. Today we use Ailerons, rudders and flaps to control the speed, lift and bank of the plane.
Can your bank teller control your mind?
No, your bank teller cannot control your mind. Nobody can control your mind.
Is the world bank under the control of IMF?
Is world bank under the control of IMF
For what reason did the Central Bank reduce the interest rates?
Central banks have control of the prevailing interest rates in the country and they usually reduce or increase them to maintain the country's economic status. If the country is having high inflation then the central bank would increase the interest rates to suck in excess cash from the markets and to reduce rates of essential commodities. Similarly, when the country is in a economic crisis, they might reduce interest rates to make borrowing cheaper and to promote spending.
What are different ways to control trade cycles?
1. Fiscal Measures: During the period of boom, decrease in public expenditures, increase in taxes and increase in public debt. On the other hand, during the period of depression, the policy of increase in public expenditures, decrease in taxes and decrease in public debt is adopted by the government. 2. Monetary Measures: Monetary measures mean that control of money and credit supply in the country. When we are facing boom or inflation, the central bank reduces the total quantity of money in circulation. The bank can adopt different measures like bank rate policy, open market operations and rationing of credit etc. On the other hand, incase of depression, the central bank can increase the quantity of money by lowering the bank rate or purchasing the securities and discounted the bills of exchange. 3. International measures: Today every country has trade relation with other countries. If there is inflation or deflation in one country, it can be easily be carried top other countries, the example of great depression can be given. Business cycle is an international phenomena and it should be tackled on international level. Different measures have been suggested by the economists to control the business fluctuations effectively. Such as: (a). Control of international production. (b). International bill stock control and international investment control. 4. State control of private investment: If the govt. controls the private investment, cyclical fluctuations can be controlled within limits while the other economists who this agree with the above view, they say that private investment will be discouraged. But J.M. Keynes says that if we adopt the middle way we can control the fluctuations.
What is a bank control key number?
bank alaska
If someone is in debit how often will the banks reduce their credit access?
If someone is in debit the bank can reduce their credit access several times, according to the credit amount and several other factors which can be different from bank to bank.
