Question

Which among the following is incorrect about Moral

Q: Answer-Which among the following is incorrect about Moral Suasion?

Moral suasion This method is generally used when quantitative methods are less effective. Under this method, the central bank persuades the commercial banks to advance credit as per the directions of central bank and to comply with the general monetary policy of central bank.

Suasion?

A RBI may request commercial banks to not to give loans for unproductive purpose

B It is a credit control method of the RBI

C It is a qualitative tool of credit control

D It can be used by Ministry of finance

E None of the above

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Which among the following is incorrect about Moral

Solution