Which among the following is a qualitative tool of monetary policy?
- ABank Rate
- BCredit calling
- CCredit rationing
- DCash 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.