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.
Question : Which of the following is not a tool of quanlitative instruments of monetary policy?
Question : __________________ refers to difference between the market value of security offered and the value of amount lent.
Question : Which of the following is not a tool of quantitative instruments of monetary policy?
Question : ____________________ refers to sale and purchase of securities in the open market by the central bank.
Question : _____________________ refers to a method in which the central bank gives direction to other banks to give or not to give credit for certain purpose to particular sectors.
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