Multiple choice

Which of the following is a quantitative credit control policy of the Reserve Bank of India?

  1. Margin requirements

  2. Moral Suasion

  3. Bank rate

  4. RBI guidelines

  5. Direct action
Reveal answer Fill a bubble to check yourself
C Correct answer
Explanation

Quantitative credit control tools directly affect the volume of money supply and credit in the economy. Bank rate is a quantitative tool as it influences the cost of credit and money supply directly through interest rate signals. Qualitative tools like margin requirements, moral suasion, and direct action affect the allocation or direction of credit rather than its overall volume.

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