Bank rate policy, open market operations, variable reserve requirements and statutory liquidity requirements employed by Reserve Bank as measures by Reserve of credit control are classified as

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

A	Quantitative methods
B	Qualitative methods
C	Both of the above
D	None of these

Explanation:

Detailed explanation-1: -Methods of Credit Control: (1) Quantitative Methods: (i) Bank rate fixation; (ii) Open market operations; (iii) Change in cash reserves ratios; (iv) Repos and reverse repos; and (v) Statutory liquidity ratio.

Detailed explanation-2: -Currently, the statutory liquidity ratio rate is 18%. (As on August 27, 2020). RBI has kept 40% as the maximum limit for SLR. SLR is calculated as a percentage of all the deposits held by the bank.

Detailed explanation-3: -Quantitative credit control refers to overall credit in the economy, affecting all sectors of the economy equally and without discrimination. Qualitative credit control refers to selective credit control that focuses on allocation of credit to different sectors of the economy.

Detailed explanation-4: -Margin requirements is not a quantitative credit control tool of RBI.

There is 1 question to complete.