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Which among the following is a qualitative tool of monetary policy?

  1. A
    Bank Rate
  2. B
    Credit calling
  3. C
    Credit rationing
  4. D
    Cash Reserve Ratio

Solution & Step-by-step Explanation

Credit rationing is a selective or qualitative tool used by a central bank to limit or allocate the maximum amount of loans and advances that commercial banks can grant to specific sectors. In contrast, Bank Rate and Cash Reserve Ratio are quantitative (general) tools.

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Which among the following is a qualitative tool of monetary policy?
A
Bank Rate
B
Credit calling
C
Credit rationing
D
Cash Reserve Ratio

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