Multiple choice

Enumerate the selective credit controls employed by RBI.

(a) Stipulating minimum margins for lending against specific securities. (b) Ceiling on credits for certain purposes. (c) Discriminatory rate of interest charged on certain type of advances.

Which of the above is incorrect?

  1. (a)

  2. (b)

  3. (c)

  4. None of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

RBI uses selective credit controls to regulate credit flow to specific sectors. All three listed measures (minimum margins, credit ceilings, discriminatory interest rates) are valid tools RBI employs, so none of them is incorrect.

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