Quantitative credit control measure among the following is the ________
Answers
Answer:
Bank rate, Statutory Cash Reserve Requirement, Statutory Liquidity Ratio are the instruments of quantitative credit control. Moral Suasion is not quantitative credit control instrument of credit control. Moral Suasion implies persuasion and request made by the Central Bank to the Commercial Banks to cooperate with the general monetary policy of the former.
Explanation:
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Answer:
Credit control is most important function of Reserve Bank of India. Credit control in the economy is required for the smooth functioning of the economy. By using credit control methods RBI tries to maintain monetary stability. There are two types of methods:
- Quantitative control to regulates the volume of total credit.
- Qualitative Control to regulates the flow of credit
Explanation:
The quantitative measures of credit control are as follows:
- Bank Rate Policy
The bank rate is the official interest rate at which RBI rediscounts the approved bills held by commercial banks.
- Open Market Operations
Open Market Operations refer to direct sales and purchase of securities and bills in the open market by Reserve bank of India.
- Cash Reserve Ratio
Cash reserve ratio refers to that portion of total deposits in commercial Bank which it has to keep with RBI as cash reserves.
- Statutory Liquidity Ratio
SLR refers to that portion of deposits with the banks which it has to keep with itself as liquid assets(Gold, approved govt. securities etc.)