Quantitative credit control measures among following
a) change in lending margins
b) bank rate policy
c) Moral suasion
d) Direct action
Answers
Answered by
2
Answer:
b
Explanation:
bank rate policy is the correct answer
Answered by
0
Quantitative credit control measures among following include banks rate policy, open market operations and variable reserve ratio
Explanation:
- The Bank rate policy influences both the cost and the availability of credit to the commercial banks. By changing the bank rate, the Reserve bank of India affects the cost of credit.
- When it raises the bank rate it raises the cost of credit and by lowering the bank rate, it lowers the cost of credit. The aim of the quantitative controls is to regulate the amount of bank advances by making the banks lend more or lend less.
- Cash Reserve Ratio (CRR) is the amount of funds that banks have to maintain with the Reserve Bank of India (RBI) at all times. If the Reserve bank of India decides to increase the Cash reserve ratio then the amount available with the banks for disbursal decreases.
To know more about
What is bank rate? Discuss the tools used by RBI to control the monetary policy?
https://brainly.in/question/33302
Similar questions
World Languages,
5 months ago
Math,
5 months ago
Social Sciences,
11 months ago
Physics,
11 months ago
Social Sciences,
1 year ago