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Which of 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

Qualitative or selective credit control tools target the allocation of credit to specific sectors rather than total volume. Credit rationing, fixing margin requirements, and moral suasion are qualitative tools. Bank Rate and CRR are quantitative tools.

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Which of 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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EconomicsMonetary PolicyQualitative Tools

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