Question

Which of the following is Qualitative Credit Control method used by Central Bank ?

A  Bank Rate Policy

B  Moral Suasion

C  Cash Reserve Ratio

D  Statutory Reserve Ratio
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Answer 1

Quantitative or traditional methods of credit control include banks rate policy, open market operations and variable reserve ratio. Qualitative or selective methods of credit control include regulation of margin requirement, credit rationing, regulation of consumer credit and direct action.