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Which of the following is not the instrument of credit control?
CRR
SLR
Repo rate
Managed floating
- CRR (Cash Reserve Ratio): The CRR is the percentage of total deposits banks must maintain as reserves with the central bank. It helps control the money supply in the economy.
- SLR (Statutory Liquidity Ratio): The SLR is the percentage of deposits banks must hold in the form of liquid cash, gold, or government securities. It also controls the money flow in the economy.
- Repo Rate: This is the interest rate at which the central bank lends money to commercial banks. Adjusting the repo rate can influence the money supply and control credit in the economy.
- Managed floating: This refers to a currency exchange rate system where the currency's value is determined by market forces with occasional intervention from the central bank. It is related to foreign exchange rather than credit control.
Managed floating is not a direct instrument of credit control.
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