Multiple choice

Which of the following is a measure selective credit control?

  1. Bank rate policy

  2. Moral suasion

  3. Statutory cash reserve ratio

  4. Open market operations

Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

Selective credit controls target specific sectors or uses of credit. Moral suasion (persuading banks to comply with central bank guidelines) is a selective tool. Bank rate, CRR, and open market operations are quantitative (general) credit controls affecting overall money supply.