RBI's Credit Control: Bank Rate Explained | Economics 12th

Dive into the quantitative methods used by the Reserve Bank of India (RBI) to control the volume of credit in the economy. This short focuses on the Bank Rate, a key tool in the RBI's arsenal. Learn how adjusting the Bank Rate influences interest rates and, consequently, the availability of credit. Perfect for 12th-grade students studying Economics, especially those delving into Chapter 10: Money Market and Capital Market in India. Question covered: Which of the following is a quantitative method used by the RBI to control the volume of credit? Options: Fixing Margin Requirements, Credit Rationing, Bank Rate, Moral Suasion. Correct answer: Bank Rate. Standard: 12th Subject: ECONOMICS Medium: English Chapter: MONEY MARKET AND CAPITAL MARKET IN INDIA Chapter Number: 10 Book Page: 81 Difficulty: easy 1736149246914