Which of the following does not fall under the "Quantitative methods" of monetary policy? |
SLR CRR Reverse repo rate Moral Suasion |
Moral Suasion |
The tools used by the Central bank to control money supply can be categorized into two heads i.e. quantitative or qualitative. Quantitative tools, control the extent of money supply by changing the CRR, or bank rate or open market operations. Whereas qualitative tools include persuasion by the Central bank in order to make commercial banks discourage or encourage lending, which is done through moral suasion, margin requirement, etc. |