Question

Which of the following are quantitative methods of credit control adopted by Central Bank? A. Bank Rate Policy
B. Open Market Operations
C. Margin Requirements
D. Variable Reserve Ratio
E. Moral Suasion

• A. A, B and C only
• B. A, B and D only
• C. B, C and E only
• D. A, D and E only

Hint:

Logic Tip: Quantitative methods control total credit volume, while qualitative methods regulate specific sectors.

Answer 1

The Correct Option is B

Step 1:
Quantitative credit control methods regulate the overall volume of credit in the economy.

Step 2:
Quantitative methods include:
• Bank Rate Policy
• Open Market Operations
• Variable Reserve Ratio

Step 3:

• Margin requirements
• Moral suasion These are qualitative/selective credit control methods.

Step 4:
Correct quantitative methods are: \[ A,\; B,\; D \] Hence, the correct answer is: \[ \boxed{\text{(2) A, B and D only}} \]