The concept of 'Time Preference' is central to the theory of:
A. Wages
B. Interest
C. Profit
D. Rent
Answer: Option B
Solution (By JKSSB Mock Tests)
The time preference theory of interest explains the rate of interest as arising from the preference of individuals for present consumption over future consumption.
Explanation:
Margin requirements (prescribing the difference between loan amount and value of security) is a selective/qualitative credit control measure used by RBI.
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