Which of the following is a qualitative credit control tool used by RBI?
A. Moral suasion.
B. Open market operations.
C. Repo rate.
D. Cash reserve requirement.
Answer:A
Which of the following is a qualitative credit control tool used by RBI?
A. Moral suasion. B. Open market operations. C. Repo rate. D. Cash reserve requirement.
Explanation: Moral suasion is application of pressure but not force to get members to adhere to a policy or advice that RBI gives. Other qualitative credit control tool includes margin requirements, consumer credit regulations, RBI guidelines, rationing of credit.