41 Which country developed banking system in the world?
UK
42 Which country when developed the system of chain banking?
USA in the mid of nineteenth century
43 Which country for the first time introduced the instrument of minimum legal cash reserve ratio for banks?
USA
44 In case of significant decrease in the demand for loans, banks are forced to
Adjust their portfolios
45 What does open market operations means?
Buying and selling of government securities
46 Bank rate refer to the interest rate at which Central bank gives loans to whom?
Commercial banks
47 What is the immediate effect of credit creation by banks?
Increase in money supply
48 Credit rationing is one of the instruments of which system?
Qualitative credit control
49 Variable reserve ratio is one of the instruments of what?
Quantitative credit control
50 Commercial banks have always to face a conflict between what?
Liquidity and profitability
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