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Which of the following is not a quantitative method of credit control?
Bank Rate
Moral Suasion
Open Market Operations
change in CRR
- Bank Rate: This is a quantitative measure where the central bank changes the rate at which it lends to commercial banks, influencing overall interest rates in the economy.
- Moral Suasion: This is a qualitative method where the central bank persuades or advises financial institutions to adhere to policy directives, rather than using formal measures.
- Open Market Operations: A quantitative strategy where the central bank buys or sells government securities in the market to regulate money supply and interest rates.
- Change in CRR (Cash Reserve Ratio): This quantitative tool involves altering the fraction of customer deposits that banks must hold as reserves, affecting their ability to lend.
Answer: Moral Suasion
By: santosh ProfileResourcesReport error
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