Which of the following is a qualitative tool of monetary policy?
A. Selective credit control
B. Open market operations
C. Cash Reserve Ratio
D. Repo rate
Answer: Option A
Solution (By JKSSB Mock Tests)
Selective credit controls (such as margin requirements and credit ceilings for specific sectors) are qualitative measures aimed at directing credit flow rather than controlling its overall volume.
Explanation:
Ricardo assumed a single factor (labour), constant returns, and international immobility of labour, while labour is mobile within a country.
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