Which of the following is a qualitative credit control measure? MCQ with Answer and Explanation

Which of the following is a qualitative credit control measure?
A. Cash Reserve Ratio
B. Margin requirements
C. Bank Rate
D. Statutory Liquidity Ratio
Answer: Option B
Solution (By JKSSB Mock Tests)
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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Practice More Economy Set 1 Questions

Question #1
The 'International Financial Services Centre' in India is located at:
A. Hyderabad
B. Bengaluru
C. Mumbai
D. GIFT City, Gandhinagar

Correct Answer: Option D


Explanation:
India's first IFSC is in GIFT City, Gandhinagar, Gujarat.

This question belongs to: Economy GK Economy Set 1
Question #2
The 'National Institution for Transforming India' was formed on:
A. 1 January 2014
B. 15 August 2014
C. 26 January 2015
D. 1 January 2015

Correct Answer: Option D


Explanation:
NITI Aayog was established on 1 January 2015.

This question belongs to: Economy GK Economy Set 1
Question #3
In the context of behavioural public finance, 'Tax Salience' refers to:
A. Only the statutory tax rate
B. Only the administrative cost of the tax
C. Only the progressivity of the tax
D. The degree to which a tax is noticed and taken into account by decision-makers

Correct Answer: Option D


Explanation:
Tax salience measures how visible or noticeable a tax is to the agents who pay it; less salient taxes tend to produce smaller behavioural responses than more salient ones of equal magnitude.

This question belongs to: Economy GK Economy Set 1