Multiple choice

The methods of credit control used by RBI can be divided into

  1. Virtual and real

  2. Statutory and natural

  3. Quantitative and Qualitative

  4. Liberal and strict

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

RBI's credit control methods are categorized as quantitative and qualitative. Quantitative methods affect the overall volume of credit (bank rate, open market operations, CRR, SLR), while qualitative methods regulate the flow of credit to specific sectors (margin requirements, moral suasion, direct action, credit authorization scheme).