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Question
Which one of the following is not a qualitative (selective) instrument of monetary policy?
Options
Credit rationing
Moral suasion
Bank rate
Margin requirements
MCQ
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Solution
Bank rate
Explanation:
- The bank rate is a quantitative instrument of monetary policy used to control the overall money supply by influencing interest rates.
- Credit rationing, moral suasion, and margin requirements are qualitative (selective) tools aimed at regulating credit for specific sectors or purposes.
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