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    Question

    Which of the following is not a selective method of

    credit control used by the RBI?
    A Moral Suasion Correct Answer Incorrect Answer
    B Open market operations Correct Answer Incorrect Answer
    C Regulation of consumer credit Correct Answer Incorrect Answer
    D Change in marginal requirement Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Monetary Policy : The implementation of RBI’s Quantitative and Qualitative (Called as Monetary Policy) instruments plays an important role in managing the money supply. Qualitative Methods : Qualitative instruments are also known as selective instruments of the RBI’s monetary policy. These instruments are used for discriminating between various uses of credit; for example, they can be used for favouring export over import or essential over non-essential credit supply. Quantitative Methods : The quantitative instruments are also known as general tools used by the RBI (Reserve Bank of India).

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