METHODS OF CREDIT CONTROL OR INSTRUMENTS OF MONETARY MANAGEMENT

Economics Assignment Help Online

METHODS OF CREDIT CONTROL OR INSTRUMENTS OF MONETARY MANAGEMENT Now we proceed to discuss the methods of credit control, also called the central banking techniques. There arc broadly speaking, two types of controls used by the central banks in modern times for regulating bank advances: («) Quantitative or General Credit Controls and (b) Qualitative Controls or the Selective Credit Controls. The aim of […]

Difficulties of Credit Control

Economics Assignment Help Online

Difficulties of Credit Control There arc several difficulties in the way of the central bank being able to cuntrol credit: First, bank credit is not the only form of credit. There is commercial credit like hook credit, bills of exchange and promissory notes (nol discounted by banks). Over these, the central hank has little control. They are as much purchasing power […]

Credit Control

Economics Assignment Help Online

Credit Control The 1110stimportant function of the central bank i the cuntrol credit. The control of credit means the regulation and control of bank advances. It goc, without saying that the nature and volume of varices have a vital bearing on the state of the eCOIIUIIl). There IS a time when trade and industry need finance, whereas the banks may feel […]

CONTROL OF CREDIT

Economics Assignment Help Online

CONTROL OF CREDIT Objectives of Credit Control A central bank contruls credit with the following objects in view: (iI) to safeguard It gokl re ‘C\’C g.lIn~t intcrnal and external dram , [II) to maintain qahillt) of I tell I nee (c) to achieve stahilit) of Iorcign exchanges: (iI) to eliminate fluctuations m out I ut IIlI employment: and (1′) to assist in economic growth. This […]

Bankers Bank

Economics Assignment Help Online

Bankers Bank Broadly speaking, the central hank ad:, ,1\ a banker’s bank in three capacitors. (I) A~ the custodian of thc cash re. curve of the commercial hanks; (ii) as the lender of I~ t resort and (iii) as a bank of central clearance, cattle mcnt and transfers. (i) Cu\I!Hliall (If the Cash Reserves (If <. ‘1lII1I11l’I’- cial lIank\, The practice […]

Banker of the State

Economics Assignment Help Online

Banker of the State Thc second important function of a central bank is to ad as a banker to the government. Alll till’ balances HI’the gm CI’IlIIll’lIt IIf the cuuntry; arc kept “ilh thc ccutral hunk. On these balances, ; usually the central bank pays no interest. On thc other hand, thc bank performs a number 01″ scrvices to thc […]

Note-Issuing Agency

Economics Assignment Help Online

Note-Issuing Agency In the early periods of banking development, almost every bank enjoyed the right of issuing notes, This led to frequent troubles. Notes were over-issued and the resulting inflation disorganized the cu.rrency sys- tern and brought other serious economic and financial consequences. The government, therefore, had to exercise strict control over the issuing of notes. Grdually, the practice […]

FUNCTIONS OF CENTRAL BANKS

Economics Assignment Help Online

FUNCTIONS OF CENTRAL BANKS What functions are more characteristically the central banking functions has been widely discussed question among economists. Hawtrey thinks that it should primarily be the “lender of last resort.” Vera Smith stresses the monopoly of note’ issue and Shaw egards control of credit as “the one true, but at the same time all sufficing, function of a central […]

CENTRAL BANKING PRINCIPLES

Economics Assignment Help Online

CENTRAL BANKING PRINCIPLES The principles on which a central bank is run are quite different from the ordinary banking principles: (i) An ordinary bank is run for profit. A central bank, on the other hand, is primarily meant to shoulder the responsibility of safe guarding the financial and economic stability of the country. “The guiding principle of a central bank,” […]

Imparlance of Central Bank

Economics Assignment Help Online

Imparlance of Central Bank Nowevery country has a central bank. It a symbol of financial sover eignty and stability of the country. A central bank is an institution \ ‘hich is responsible for safeguarding the financial stability of the country, It holds the ultimate reserves of the nation, controls the flow of purchasing power -whcthcr currency or credit-and acts […]