Which of the following are the quantitative tools opted by Central bank to control money supply.
(A) Cash reserve Ratio.
(B) Moral Suasion.
(C) Bank Rate.
(D) Margin requirement.
Choose the correct answer from the options given below:
Which of the following are the quantitative tools opted by Central bank to control money supply.
(A) Cash reserve Ratio.
(B) Moral Suasion.
(C) Bank Rate.
(D) Margin requirement.
Choose the correct answer from the options given below:
Solution
✅ Correct Option: 3
Quantitative (general) credit control tools regulate the overall volume of money supply: Cash Reserve Ratio, SLR, Bank Rate and Open Market Operations. Moral Suasion and Margin Requirements are qualitative (selective) tools that direct credit to or away from specific uses. Hence only (A) CRR and (C) Bank Rate are quantitative tools.
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