Question

Which method of credit control is used when the central bank wants banks to reduce loans to a particular sector by fixing an upper limit on credit?

विकल्प

• Publicity

• Credit rationing

• Open market operations

• Bank rate

Answer 1

Credit rationing

Explanation:

Credit rationing is a qualitative method where the central bank sets a ceiling on the amount of credit that banks can extend to certain sectors, thereby directing the flow of credit.