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      Question

      Which of the following is NOT considered a

      'Quantitative' tool of monetary policy used by the RBI?Β 
      A Repo Rate Correct Answer Incorrect Answer
      B Cash Reserve Ratio (CRR) Correct Answer Incorrect Answer
      C Moral Suasion Correct Answer Incorrect Answer
      D Open Market Operations (OMO) Correct Answer Incorrect Answer
      E Statutory Liquidity Ratio (SLR) Correct Answer Incorrect Answer

      Solution

      Moral Suasion is a qualitative or selective tool. Quantitative tools (Repo, CRR, SLR) affect the total volume of money supply in the economy, while qualitative tools focus on the direction of credit.

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