Multiple choice

Which of the following is not a technique/tool/instrument of money/credit control by the Reserve Bank of India?

  1. Open Market Operations

  2. Bank Rate

  3. Liquidity Adjustment Facility

  4. Refinance

  5. Monopoly to issue currency note

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E Correct answer
Explanation

The RBI uses both quantitative and qualitative tools for credit control. Quantitative tools include Open Market Operations, Bank Rate, Liquidity Adjustment Facility, and Refinance - all of which directly affect the money supply volume. However, the monopoly to issue currency notes is a sovereign function mandated by law, not a tool for money or credit control - it's the RBI's fundamental role, not a regulatory instrument.

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