- Pre-reform India had a heavily regulated financial system with administered interest rates. - CRR and SLR were key tools for monetary control. - The Bank Rate (discount rate) was less effective or less frequently used as a dynamic tool for influencing market interest rates compared to direct controls.
During the pre reform period this technique was less used _______
Asked in WBCS Main Paper 5 2021 · Topic: Money & Banking (Monetary Policy: Objectives, Instruments (quantitative and qualitative), and Transmission Mechanism)
More Economic Development questions
- Which of the following statements is correct? 'Impossible Trinity' disallows the simultaneous achievement of
- Rate of interest rate is being reduced in India
- Which of the following is not a monetary policy arrangement?
- 'Open market operations' by the RBI implies
- When the RBI announces an increase in CRR, it means
- Strategically the open market operations (OMPs) is more effective than the bank rate policy to control money supply and inflationary pressure since
- Demonetization is a part of monetary policy of a country, which means
- Which of the following pairs is NOT correctly matched?