Question

Q. Which of the following statements is/are correct about the policy of Moral Suasion by the RBI?

Select the correct answer using the codes given below:

• A. 1 only
• B. 1 and 2 only
• C. 2 and 3 only
• D. 1, 2 and 3

Answer 1

The correct option is B 1 and 2 only

Explanation:

Statement 1 is correct: Moral Suasion is a qualitative control method of the RBI.

Statement 2 is correct: Moral suasion is a moral act of persuasion to modify or change behavior using verbal or rhetorical techniques, as objected to force.

Statement 3 is incorrect: Most of this session includes verbal gestures and signaling through central bank minutes that can be pulled apart by investigators and journalists, although these oratorical techniques can certainly involve threats or provocative speech.