Question : Which of the following is not a tool of quantitative instruments of monetary policy?
Option 1: Open market operations
Option 2: Margin requirements
Option 3: Repo rate
Option 4: Bank rate
Answer (1)
22nd Jan, 2024
Correct Answer:
Margin requirements
Solution :
Margin requirements is a tool of qualitative instruments of monetary policy.
Margin requirements refers to difference between the market value of security offered and the value of amount lent.
Hence, Option B is correct.
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