For quantitative credit control, the RBI uses which of the following instruments?
(i) Cash Reserve Ratio
(ii) Bank Rate
(iii) Open Market Operations
(iv) Margin requirements
Select your answer from the options below:
- A(i) and (ii)
- B(ii) and (iv)
- C(i), (ii) and (iii)
- D(i), (ii), (iii) and (iv)
Solution & Step-by-step Explanation
Quantitative methods of credit control influence the total volume of credit in the banking system and include Cash Reserve Ratio (CRR), Bank Rate, and Open Market Operations (OMO). Margin requirements are part of qualitative (or selective) credit control methods.