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Which method Central Bank adopts for controlling quantitative credit?
Bank Rate
Open Market Operations
Change in Cash Reserve Ratio
All the above
- Bank Rate: The central bank can influence lending rates by altering the bank rate, making borrowing more or less expensive.
- Open Market Operations: Through buying or selling government securities, the central bank can control the money supply.
- Change in Cash Reserve Ratio: By adjusting the cash reserve ratio, the central bank can directly influence how much money banks can lend.
- Correct Answer: Option 4 - All the above : The methods listed are all tools used by central banks for controlling quantitative credit.
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