ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -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-2: -The 6 tools of monetary policy are reverse Repo Rate, Reverse Repo Rate, Open Market Operations, Bank Rate policy (discount rate), cash reserve ratio (CRR), Statutory Liquidity Ratio (SLR).

Detailed explanation-3: -The qualitative tools of monetary policy are Rationing of credit, Consumer Credit Regulation, Guidelines, Margin requirements, Moral Suasion. You can read about the Monetary Policy – Objectives, Role, Instruments in the given link.

Detailed explanation-4: -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-5: -And to control this, RBI implements the monetary policy’s Quantitative and Qualitative instruments to achieve economic goals. The main instruments of these policies are CRR, SLR, Bank Rate, Repo Rate, Reverse Repo Rate, Open Market Operations, etc.