Q. Which of the following are considered Qualitative Instruments of monetary policy?
1.Repo Rate
2.Moral Suasion
3.Selective Credit Control
4.Cash Reserve Ratio
Select the correct answer using the code below:

[A] 1 and 4 only

[B] 2 and 3 only

[C] 1, 2 and 3 only

[D] 1, 2, 3 and 4

Answer: B
Notes:

Explanation:

  • Moral Suasion and Selective Credit Control are qualitative tools used to influence lending behaviour and direct credit to preferred sectors.
  • Repo Rate and Cash Reserve Ratio are quantitative tools aimed at adjusting the total money supply.

Source: Laxmikant (Polity)

Blog
Academy
Community