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Home Questions DSPKBFDXV8
Target Exam

CUET

Subject

Economics

Chapter

Macro Economics: Determination of Income and Employment

Question:

Which of the following is a "Quantitative instrument" to control supply of money?

Options:

Moral suasion

Open market operations

Change in margin requirements

All of the above

Correct Answer:

Open market operations

Explanation:

The correct answer is option 2: Open market operations

Following are the quantitative measures:

  1. Bank rate
  2. Repo rate
  3. Reverse repo rate
  4. Open market operations
  5. Varying legal reserve requirements i.e. CRR, SLR

Following are the qualitative measures:

  1. Imposing margin requirements
  2. Moral suasion and direct action
  3. Selective credit control

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