Which of the following is a qualitative method of credit control used by RBI?
A. Bank Rate
B. Open Market Operations
C. Moral Suasion
D. Cash Reserve Ratio
Answer: Option C
Solution (By JKSSB Mock Tests)
Moral suasion is a qualitative (selective) method of credit control where RBI persuades banks to follow certain credit policies. Bank Rate, OMO and CRR are quantitative methods.
Explanation:
Quantitative restrictions (QRs) are non-tariff barriers that limit the volume or value of imports, such as quotas and licensing requirements.
Explanation:
Near money refers to assets that are highly liquid and can be converted into cash quickly with minimal loss of value, such as time deposits and certain money market instruments.
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