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).
Originally written on
April 25, 2015
and last modified on
April 25, 2015.
rajeev
May 14, 2015 at 6:56 pmsir option ‘B’ is also right.