Which among the following is a qualitative tool of monetary policy?

Which among the following is a qualitative tool of monetary policy?
[A]Bank Rate
[B]Credit Ceiling
[C]Credit rationing
[D]Cash Reserve Ratio

Credit rationing
The quantitative instruments are Open Market Operations, Liquidity Adjustment Facility (Repo and Reverse Repo), Marginal Standing Facility, SLR, CRR, Bank Rate, Credit Ceiling etc. On the other hand, qualitative instruments are: credit rationing, moral suasion and direct action (by RBI on banks).

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This question "Which among the following is a qualitative tool of monetary policy?" was published on GKToday on April 25, 2015 at 10:39 am. For Current Affairs Questions Archive Click Here. For General Knowledge Questions Archive Click Here.

Comments

  • rajeev
    Reply

    sir option ‘B’ is also right.