Selective credit controls are tools used by the central bank to regulate the flow of credit to particular sectors or for specific purposes. Options A (Change in lending margins), C (Credit rationing), and D (Moral suasion) are all examples of selective credit control measures used by the central bank.
Which of the following is not a measure of selective credit control ?
Asked in RPSC RAS Prelims 2023 · Topic: Money & Banking (Monetary Policy: Objectives, Instruments (quantitative and qualitative), and Transmission Mechanism)
More Economic Development questions
- Which of the following is/are incorrectly matched? Select your answer using the codes given below I. Credit creation - Reserve Bank of India II. Commercial Bank - Accepting deposits III. Reserve Bank of India - Control of credit IV. Quantitative Control - Scheduled Banks
- The objectives of Monetary policy is / are I. Price stability II. Economic growth III. Social justice IV. Reducing budgetary deficit
- The Monetary Policy of the Government of India emphasised the following two aims of the economic policy (i) To control and reduce inflationary pressure in the economy. (ii) Speed up economic development in the country to raise national income and standard of living of the people. (iii) To increase the per capita income. (iv) To have a cheap money policy. Select the correct answer by using the codes given below :
- RBI launched the Market Stabilisation Scheme (MSS) in 2004
- Which one of the following best describes the term 'Quantitative Easing'?
- Consider the following statements: 1. Repo rate is the interest rate at which RBI lends to commercial banks for short period. 2. Reverse repo rate is the interest rate which RBI pays to commercial banks on short-term deposits. 3. Gap between repo rate and reverse repo rate has been declining in India in the recent past. Which of the statements given above is/are not correct?
- If the Cash Reserve Ratio is lowered by the RBI, supply of money in the economy will :
- The banks are required to maintain a certain ratio between their cash in hand and total assets. This ratio is known as :