Selective credit control method is used to __________.

regulate credit for some specific purpose

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redirect credit for some specific purpose

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restrict supply of credit to check inflation

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restrict credit to some identified companies

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Solution

The correct option is A regulate credit for some specific purpose
Selective credit control method of monetary policy includes those instruments which focus on the selected sectors of the economy and not the size of the total credit in economy as it is a qualitative method used by the central bank to change affected areas only and not the whole economy. It regulates the credit for some specific purpose which can be prices for a specific commodity etc.

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