Difference between indirect and direct and quantitative and qualitative intruments of monetary policy
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Whereas, quantitative instruments influence the volume of Money and credit supply in the system, the qualitative instruments regulate credit supply in certain selective sectors (directions) of the economy. ... The percentage of minimum margin is decided by RBI, and used as an instrument in credit regulation.
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The main objectives of the monetary policy are as follows: Regulation of monetary growth and maintenance of price stability. Ensuring adequate expansion of credit. Assist economic growth.
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