Question : Which one of the following is not an instrument of credit control in India?
Option 1: Rationing of credit
Option 2: Direct action
Option 3: Open market operations
Option 4: Variable cost reserve ratios
Correct Answer: Variable cost reserve ratios
Solution : The correct option is Variable cost reserve ratios .
The objective of the variable reserve ratio (Cash Reserve Ratio), which is a quantitative technique, is to manage just the volume of credit, not the volume and purpose of the credit for which the bank makes loans. For these goals, both the qualitative approach and the selective control method are utilised. It has several drawbacks.
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Question : Which of the following is one of the Open Market Operations of the Reserve Bank of India?
Question : Which of the following is not a component of monetary policy in India?
Question : Which of the following cost is related to marginal cost ?
Question : Sextant is an instrument used in which of the following?
Question : It is an instrument of short term borrowings issued by Reserve Bank of India on behalf of Indian government. Which money market instrument is highlighted in the given statement?
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