BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

BUSINESS POLICY

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of these is a quantitative instrument of Monetary Policy?
A
a) REPO
B
b) CRR
C
c) SLR
D
d) All the Above
E
Unattempted
Explanation: 

Detailed explanation-1: -Which of these is a quantitative instrument of Monetary Policy? Notes: The quantitative instruments are: Open Market Operations, Liquidity Adjustment Facility (Repo and Reverse Repo), Marginal Standing Facility, SLR, CRR Bank Rate etc.

Detailed explanation-2: -Moral Suasion is not quantitative credit control instrument of credit control. Moral Suasion implies persuasion and request made by the Central Bank to the Commercial Banks to cooperate with the general monetary policy of the former.

Detailed explanation-3: -Explanation: The RBI controls the money supply in the economy through quantitative and qualitative tools. Under Quantitative measures money supply is controlled through tools like CRR, or bank rate or open market operations. Under qualitative measures, tools such as moral suasion, margin requirement, etc.

Detailed explanation-4: -The list of quantitative instruments includes Open Market Operations, Bank Rate, Repo Rate, Reverse Repo Rate, Cash Reserve Ratio, Statutory Liquidity Ratio, Marginal standing facility, and Liquidity Adjustment Facility (LAF).

Detailed explanation-5: -The qualitative tools of monetary policy are Rationing of credit, Consumer Credit Regulation, Guidelines, Margin requirements, Moral Suasion.

There is 1 question to complete.