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1.Both offers financial services 2.both advances loans 3.there z always a chief executive designated at both d banks
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How can you control the liquidity in system with CRR?
With Cash Reserve Ratio the Commercial Banks can keep money in Central Bank. So that amount of money keeps intact coz the commercial bank do not retain that with themselves. So if in a case the commercial banks need money they can easily opt for the aforesaid invested money with central bank.
Is state bank of India a central bank?
Yes and No. Actually speaking, there is a bank named Central Bank of India which offers commercial and retail banking services to citizens of India. At the same time, the term Central Bank of a Country refers to the bank that governs all banking operations in a country. If that is what you are referring to by central bank in your question, then Yes, Reserve Bank of India (RBI) is the central bank in the country.
What is the slogan of central bank of India?
meaning is central bank links with everyone
Which among the following measure of controlling inflation can be taken up byReserve Bank of India and not by Government of India?
I).Monetary Measures The most important and commonly used method to control inflation is monetary policy of the Central Bank. Most central banks use high interest rates as the traditional way to fight or prevent inflation. Monetary measures used to control inflation include: (i) bank rate policy (ii) cash reserve ratio and (iii) open market operations. Bank rate policy is used as the main instrument of monetary control during the period of inflation. When the central bank raises the bank rate, it is said to have adopted a dear money policy. The increase in bank rate increases the cost of borrowing which reduces commercial banks borrowing from the central bank. Consequently, the flow of money from the commercial banks to the public gets reduced. Therefore, inflation is controlled to the extent it is caused by the bank credit. Cash Reserve Ratio (CRR) : To control inflation, the central bank raises the CRR which reduces the lending capacity of the commercial banks. Consequently, flow of money from commercial banks to public decreases. In the process, it halts the rise in prices to the extent it is caused by banks credits to the public. Open Market Operations: Open market operations refer to sale and purchase of government securities and bonds by the central bank. To control inflation, central bank sells the government securities to the public through the banks. This results in transfer of a part of bank deposits to central bank account and reduces credit creation capacity of the commercial banks
What is a central bank?
central bank is a bank that make the monetary policy of the country....
Differences between functions of the central bank and commercial bank?
central bank does not accept deposit from customers whiles commercial bank does. central bank is responsible for issuing of currencies whiles commercial bank does not. central bank is accountable to the government whiles commercial bank is accountable to the share holders. central bank is not set up for profit but commercial bank is set up for profit. central bank is governed by an act of parliament whiles commercial bank is set up by an incorporation. central bank formulate monetary policies whiles commercial bank does not.
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 differences between commercial bank and non bank financial institution?
difference between non bank and commercial bank?
Why a central bank may close down a commercial bank?
A central bank may close down a commercial bank if they feel that the bank isn't doing its duties correctly. If it is cheating customers or misusing funds or not following the guidelines laid down by the central bank it can be closed. Usually central banks give warnings to a bank if they find anything and if their warnings are not listened to, they resort to closing the commercial bank down as the last resort.
How central bank of nigeria controls other commercial banks?
central bank control other bank by giving them loan and it debited their account.
Why Net-Worth of commercial banks fall sharply when central bank apply moneyary policy?
Commercial Bank have Net worth 200,0000
Is reserve bank of India a commercial bank?
No. Reserve Bank of India is the central bank of India. It is not a regular commercial bank. It supervises and regulates the working and operations of all commercial banks in India. It has been in existence since the British Rule in India.
What do you mean by reverse repo rates?
# 2 Repo rate is the discounting rate at which central bank borrows security from commercial bank.Repo means repurchase agreement b/w RBI &commercial bank. Reverse repo is the rediscounting rate at which commercial bank borrows discounted security from central bank ie RBI.
What is Difference between Base Rate and prime rate?
The prime rate is the rate at which the central bank lends to the commercial banks whiles the base rate is the rate at which the commercial banks lend to the public
How can you control the liquidity in system with CRR?
With Cash Reserve Ratio the Commercial Banks can keep money in Central Bank. So that amount of money keeps intact coz the commercial bank do not retain that with themselves. So if in a case the commercial banks need money they can easily opt for the aforesaid invested money with central bank.
Is state bank of India a central bank?
Yes and No. Actually speaking, there is a bank named Central Bank of India which offers commercial and retail banking services to citizens of India. At the same time, the term Central Bank of a Country refers to the bank that governs all banking operations in a country. If that is what you are referring to by central bank in your question, then Yes, Reserve Bank of India (RBI) is the central bank in the country.
What are functions of central bank India?
to provide loan to customers and other commercial banks. to check the functioning of commercial banks.
