Multiple choice

Which of the following is/are not an instrument of selective credit control in India?

  1. Regulation of consumer credit

  2. Rationing of credit

  3. Margin requirements

  4. Variable Reserve Ratios
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Variable Reserve Ratio (Cash Reserve Ratio) is aimed to control only the volume of credit (quantitative method), not the purpose of credit for which bank gives loans. Qualitative method and selective control method are used for these purposes.

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