MCQs · Q5
Q.Which of the following is a SELECTIVE (qualitative) method of credit control?
(A) Bank rate
(B) Open market operations
(C) Margin requirements
(D) Cash reserve ratio
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Start your 14-day free trial to unlock the full solution →Section c draws the key distinction: quantitative methods control how much credit is created in the whole economy, while selective (qualitative) methods control for what purpose credit is used.
Bank rate (A), open market operations (B), and the cash reserve ratio (D) are all listed in Section d as quantitative tools — they raise or lower the total volume of credit across the entire economy without singling out any particular use. …
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