The main objectives of the credit control are 1 Attain stability in exchange rate and money ma...........

Economic Affairs Money Supply and Monetary Policy

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The main objectives of the credit control are:

1. Attain stability in exchange rate and money market of the country.

2. Control business cycle and meet business needs.

3. Resource management

4. Redistribution of income

Which of the following statement is/are true?

Only one statement is correct

Only two statements are correct

Only three statements are correct

All statements are correct

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Explanation:

Credit control policy is just an arm of economic policy which comes under the purview of Reserve Bank of India, hence, its main objective being attainment of high growth rate while maintaining reasonable stability of the internal purchasing power of money. The broad objectives of credit control policy in India have been-
Ensure an adequate level of liquidity enough to attain high economic growth rate along with maximum utilization of resource but without generating high inflationary pressure
Attain stability in exchange rate and money market of the country.
• Meeting the financial requirement during slump in the economy and in the normal times as well.
• Control business cycle and meet business needs.