Which of the following is/are a qualitative tool of credit control adopted by the central bank of a country?

(A) Repurchase agreement.
(B) Moral suasion.
(C) Open market operations.
(D) Margin requirements.

Choose the correct answer from the options given below:

(B) and (D) only

The correct answer is Option (2) → (B) and (D) only

The Central Bank uses two types of credit control measures to regulate the flow of credit in the economy:

1. Quantitative (General) tools — affect the overall volume of credit:

• Bank Rate Policy

• Cash Reserve Ratio (CRR)

• Statutory Liquidity Ratio (SLR)

• Open Market Operations (OMO)

• Repurchase agreements (Repo/Reverse Repo)
  (Hence, options A and C are quantitative tools.)

2. Qualitative (Selective) tools — influence the direction or allocation of credit:

• Moral Suasion → Persuading banks to follow the central bank’s guidelines.

• Margin Requirements → Regulating how much loan banks can provide against securities.
  (Hence, options B and D are qualitative tools.)