arrow
arrow
arrow
Which of the following is a qualitative measure of credit control used by the Reserve Bank of India? A) CRR B) Moral Suasion C) SLR
Question

Which of the following is a qualitative measure of credit control used by the Reserve Bank of India?
A) CRR
B) Moral Suasion
C) SLR

A.

Only A

B.

Only B

C.

Both B and C

D.

Only C

Correct option is B

Moral suasion is a qualitative measure of credit control used by the Reserve Bank of India. It involves persuasion and advice by the RBI to the banks regarding their lending and investment policies but does not include mandatory regulations.
- CRR (Cash Reserve Ratio) and SLR (Statutory Liquidity Ratio) are quantitative measures of credit control that mandate the amount of funds banks must hold in reserve.
CRR (Cash Reserve Ratio):
 CRR is the percentage of a bank's total deposits that it must hold as reserves in cash with the central bank.
 It's a tool used by the central bank to regulate the liquidity in the banking system.
SLR (Statutory Liquidity Ratio):
 SLR is the percentage of a bank's total deposits that it must maintain in the form of liquid assets like cash, gold, or government-approved securities.
 It's also a tool used by the central bank to control the liquidity in the banking system.

Free Tests

Free
Must Attempt

SSC GD PYP (Held on 4 Feb 2025 S1)

languageIcon English
  • pdpQsnIcon80 Questions
  • pdpsheetsIcon160 Marks
  • timerIcon60 Mins
languageIcon English
Free
Must Attempt

Hindi Section Test 1

languageIcon English
  • pdpQsnIcon20 Questions
  • pdpsheetsIcon40 Marks
  • timerIcon12 Mins
languageIcon English
Free
Must Attempt

SSC GD Constable Full Mock Test 1

languageIcon English
  • pdpQsnIcon80 Questions
  • pdpsheetsIcon160 Marks
  • timerIcon60 Mins
languageIcon English
test-prime-package

Access ‘SSC CHSL Tier I’ Mock Tests with

  • 60000+ Mocks and Previous Year Papers
  • Unlimited Re-Attempts
  • Personalised Report Card
  • 500% Refund on Final Selection
  • Largest Community
students-icon
353k+ students have already unlocked exclusive benefits with Test Prime!
Our Plans
Monthsup-arrow