BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A term descriptive of corrupt practices of many banks
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A term applied to banks that are conservative in their banking practices
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Persuasion of banks to adhere to central bank desires
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It denotes conduct or character that is bad and vice
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Detailed explanation-1: -Moral suasion refers to the persuasion of banks by the Central banks, so as they adhere to the Central bank’s policies. It is a qualitative method of credit control undertaken by the central bank so as to achieve their economic objectives.
Detailed explanation-2: -Moral suasion is a qualitative method of credit control, being used by the central bank. Under this method, the Central Bank merely uses its moral influence on the commercial banks. It includes the advice, suggestion request and persuasion with the commercial banks to co-operate with the Central Bank.
Detailed explanation-3: -Moral suasion is a request by the RBI to the commercial banks to take specific measures as per the economy’s trends. For instance, RBI may direct banks not to give out certain loans. It includes psychological means and informal means of selective credit control.
Detailed explanation-4: -Definition. Appealing to the ethical principles or beliefs of an adversary or the public to convince the adversary to change behavior or attitudes.
Detailed explanation-5: -"Persuasion” is much more commonly used than “suasion". “Persuasion” ordinarily refers to exhortation by means of argumentation or reasoned discourse. “Suasion” may have this sense, but it is not uncommon for “suasion” to refer to the exercise of influence by other means.