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
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.
Question : Which of the following is not a tool of quanlitative instruments of monetary policy?
Question : ____________________ refers to sale and purchase of securities in the open market by the central bank.
Question : __________________ refers to difference between the market value of security offered and the value of amount lent.
Question : ___________ is a process where the central bank reduces the money supply in the economy.
Question : Money multiplier uses which of the following monetary instruments for its calculation?
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