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51.

What is meant by rationing of credit ?

Answer»

Rationing of credit refers to the fixation of credit quotas for different business activities.
Discussion
52.

Bank rate means:(a) Interest rate of banks(b) Exchange rate(c) Reserve bank rates(d) Market rates

Answer»

(c) Reserve bank rates
Discussion
53.

How is the Reserve Bank of India administered and controlled ?

Answer»

Management and operation of the Reserve Bank of India is in the hands of the central board of directors. There are twenty members in this board. There is one governor and four deputy-governors along with the ten directors nominated by the government and four directors from each regional office and one government officer. Together, they make the structure of the board of Reserve Bank of India.
Discussion
54.

What are the functions of the Reserve Bank of India as a custodian of foreign exchange ?

Answer»

The central bank is a custodian of the country’s stock of gold and foreign currencies. The central bank maintains the stability of exchange rate fixed by the government. The central bank performs two major functions in the field of foreign exchange : One, it is the custodian of the country’s reserves of international currencies, and second, it maintains stability of exchange rate of domestic currency. In this way, the loans can be fulfilled at the time of need, and the people going to foreign countries are also provided with the required currency.
Discussion