Question : Which of the following is not a tool of quanlitative instruments of monetary policy?
Option 1: Open market operations
Option 2: Margin requirements
Option 3: Moral suasion
Option 4: Selective credit control.
Correct Answer: Open market operations
Solution : Open market operations refers to sale and purchase of securities in the open market by the central bank. Hence, Option A is correct.
Question : Which of the following is not a tool of quantitative instruments of monetary policy?
Question : ________ is exercised through discussions, letters, and speeches to banks.
Question : __________________ refers to difference between the market value of security offered and the value of amount lent.
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.
Question : Open market operation is most widely tool of which policy?
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