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Question
Which one of the following is not a quantitative instrument of monetary policy?
Options
Bank rate
Margin requirement
Open market operations
Cash Reserve Ratio
MCQ
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Solution
Margin requirement
Explanation:
- Margin requirement is a qualitative (selective) instrument of monetary policy used to control credit for specific purposes.
- In contrast, bank rate, open market operations, and cash reserve ratio (CRR) are quantitative tools that regulate the overall money supply in the economy.
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