Which of the following monetary instruments of RBI is qualitative in nature?
Show answer & explanation
Correct answer: A
Explanation
The Correct answer is option 1 i.e. Moral Suasion
- Moral suasion:- The RBI verbally requests commercial banks to decrease or increase interest rates.
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Other qualitative instruments of monetary policy include:
- Regulation of consumer credit
- Rationing of credit
- Direct action