Question : ______________________is a combination of persuasion and pressure that central bank applies on other banks in order to get them in line with the policy.
Option 1: Margin requirements
Option 2: Moral suasion
Option 3: Open market operations
Option 4: Bank rate.
Correct Answer:
Moral suasion
Solution :
Moral suasion is a combination of persuasion and pressure that central bank applies on other banks in order to get them in line with the policy.
Hence, Option B is correct.