Which of the following are the instruments of Credit Control in the hands of the RBI?begin{enumerate}[I.]item Lowering or raising the discount and interest rates.item Raising the minimum support price of the major agro products.item Lowering or raising the minimum cash reserves maintained by the commercial banks.end{enumerate} Select the correct answer using the codes given below.

BANKING GENERAL KNOWLEDGE

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

Which of the following are the instruments of Credit Control in the hands of the RBI?

A	Only I
B	Only II
C	Only III
D	Both I and III

Explanation:

Detailed explanation-1: -The different instruments of credit control used by the Reserve Bank of India are Statutory Liquidity Ratio (SLR), Cash Reserve Ratio (CRR), the Bank Rate Policy, Selective Credit Control (SCC), Open Market Operations (OMOs).

Detailed explanation-2: -Bank rate, Statutory Cash Reserve Requirement, Statutory Liquidity Ratio are the instruments of quantitative credit control. Moral Suasion is not quantitative credit control instrument of credit control.

Detailed explanation-3: -The Central Bank makes use of Repo Rate to control the supply of money and credit creation.

There is 1 question to complete.