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Which of the following is not a quantitative Method of Credit Control?
Open Market Operation
Margin Requirements
Variable Reserve Ratio
Bank Rate Policy
- Open Market Operation: The central bank buys or sells government securities in the open market to regulate the money supply. It's a key quantitative tool.
- Margin Requirements: Refers to the collateral required for loans. It's used to control the volume of credit but is a qualitative method, not quantitative.
- Variable Reserve Ratio: This involves changing the reserve requirements that banks must hold, affecting lending capacity. It's a quantitative method.
- Bank Rate Policy: Adjusting the interest rate at which the central bank lends to commercial banks. This influences overall credit conditions and is quantitative.
The correct answer is:
- Option 2: Margin Requirements
By: santosh ProfileResourcesReport error
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