--%>
Assignment Help - homework help

Define bank rate policy

Define bank rate policy? How does it operate as a technique of credit control?

Answer: Bank rate is the rate at which the central bank provides loans to the commercial banks. The increase in bank rate leads to rise in interest of loans. This discourages borrowers from taking loans. This reduces credit creation. The decrease in bank rate will have opposite effect.

   Related Questions in Macroeconomics

  • Q : Sources of demand for foreign currency

    State main sources of demand for foreign currency? Answer: The four main sources of demand for foreign currency are as follows: A) To buy services and goods from other countries. B) To send a gift abroad.

  • Q : Role of price in market economies What

    What is the role of price in market economies?

    		•
  • Q : Why value of multiplier is low In poor

    In poor countries people spend a big percentage of their income so that APC and MPC are high. Yet, the value of multiplier is low. Explain why?

    		•
  • Q : Threats of SWOT analysis Threats of

    Threats of SWOT analysis: • Possible threat from other banks and other financial institutions • There is always a possible threat of market fluctuations. By this we me

    		•
  • Q : Why Exceptional Demand Curve Explain

    Explain with examples the reasons for exceptional demand curve

    		•
  • Q : From the heterodox approach From the

    From the heterodox approach, what options does the enterprise have to produce more output? What impact do these options have on its cost structure?

    		•
  • Q : Value of exports of goods A country’s

    A country’s balance of trade is Rs. 75 crores. The value of imports of goods is Rs. 100 crores. What is the value of exports of goods?

    		•
  • Q : Fundamental supply and demand in foreign

    Question: Changes in currency supply and demand can be traced back to changes in fundamental supply and demand in foreign and domestic i._____________________ markets and foreign and domestic ii.___________________

    		•
  • Q : Important issues in Macroeconomics to

    Macroeconomics is primarily focused on issues about: (w) economy extensive aggregate variables as like national income. (x) the structure of economic activity quite than its level. (y) resource allocations through households and business firms. (z) po

    		•
  • Q : Economics Hello. I need help with my

    Hello. I need help with my assignment, I was sick and lost alot of time.My submission deadline is tomorrow i need your help i have attached the questions Thanks in advance

    		•