Question : Which of the following is a qualitative measure of credit control used by the Reserve Bank of India?

A) CRR
B) Moral Suasion
C) SLR

Option 1: Only A

Option 2: Only B

Option 3: Both B and C

Option 4: Only C


Team Careers360 5th Jan, 2024
Answer (1)
Team Careers360 14th Jan, 2024

Correct Answer: Only B


Solution : The correct answer is Only B .

The Reserve Bank of India uses a tactic known as "moral suasion" to persuade commercial banks to take particular actions in line with the economy. The percentage of a bank's total deposits that it must keep as liquid cash with the RBI and SLR is known as the cash reserve ratio, or CRR. A bank holds a minimum percentage of its total deposits in the form of gold or other securities, known as the statutory liquidity ratio.

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