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Which is a qualitative method of controlling credit?
Change in Margin Requirements of Loanee
Credit Rationing
Direct Action
All of these
- Change in Margin Requirements of Loanee: This is a quantitative or selective tool. By changing the margin requirements, the central bank controls the amount of loan banks can give against securities.
- Credit Rationing: This is a qualitative (selective) method. It restricts the quantity or type of credit for certain sectors or purposes.
- Direct Action: This is also a qualitative method where the central bank directly controls or guides banks’ lending policies, often by issuing directives.
- Option 4: All of these: Only some of these are qualitative, not all.
The correct answer is Option:2, Credit Rationing.
By: santosh ProfileResourcesReport error
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