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

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.

View Complete Question

Related Questions in Macroeconomics

Q : Foreign trade eliminate deficient demand

In what respect foreign trade will be helpful in eliminating the adverse economic influences of deficient demand? Answer: Export increases the demand for services a

Q : EQUILIBRIUM GDP WHAT IS THE CHANGE IN

WHAT IS THE CHANGE IN EQUILIBRIUM gdp CAUSED BY THE ADDITION OF NET EXPORTS?

Q : Base of categorizing receipts into

What is the base of categorizing receipts into revenue and capital receipts?

Q : Paradox of Value-total utility and

I have a problem in economics on Paradox of Value-total utility and marginal utility. Please help me in the following question. Water is more precious than diamonds when measured by _____, however less valuable when measured by _____. (i) Total cost, total benefit. (i

Q : How commercial bank make money How does

How does a commercial bank make money? Answer: Commercial banks are capable to make credit that is many times greater than deposits received by banks. Money creatio

Q : Principles of macro economics what are

what are the four supply factors of economic growth

Q : Market Supply versus Individual Supply

What is the basic difference between Market Supply and Individual Supply?

Q : Market price decrement according to

When heroin were legalized, in that case the: (w) market price of heroin would drop considerably. (x) demand would raise although supply would decrease. (y) demand would decrease but supply would increase. (z) price of cocaine would raise.

Q : Potential GDP The hypothetical

The hypothetical information in the following table shows what the economic situation will be in 2015 if the Fed does not use monetary policy: Year Potential GDP Real GDP Price Level 2014 $15.2 trillion $15.2 trillion 110.0 2015 $15.6 trillion $15.8 trillion

Q : Domestic inflation of fixed or managed

Question: A county with a fixed or managed exchange rate would consider i.___________________ its currency if the country is worried about domestic inflation. ii. Briefly Explain?

Discover Q & A

Leading Solution Library

Avail More Than 1431362 Solved problems, classrooms assignments, textbook's solutions, for quick Downloads

No hassle, Instant Access

Start Discovering

18,76,764

1922553
Asked

3,689

Active Tutors

1431362

Questions
Answered

Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!

Submit Assignment