Multiple choice

Which measure comes under quantitative credit controls adopted by Central Bank of the Country?

  1. Cash Reserve Ratio

  2. Bank Rate

  3. Open Market Operations

  4. All of these
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Cash Reserve Ratio, Bank Rate and open market operations measure comes under quantitative credit controls adopted by Central Bank of the Country. Bank rate is the rate of interest charged by the Central Bank on the re discounting of bills of exchange. Under Cash reserve ratio, the central banks issue Government Securities to the commercial banks for which they have to pay to the central bank. 

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