Which one of the following is not a quantitative credit control measure of a Central Bank ?
Options:
A . Open Market Operations
B . Bank Rate Policy
C . Cash Reserve Ratio
D . Moral Suasion
Answer: Option D Answer: (d) The Central Bank uses Quantitative control to regulate the volume of total credit. Quantitative methods are: Manipulation of Bank Rate; Open market operations; Manipulation of Cash reserve ratio; Repo & Reverse Repo; and Altering Statutory Liquidity Ratio. Moral persuasion and direct action is a qualitative method.
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