Which of the following is/are the primary factor(s) that affect(s) the control of credit in an economy?
A
Demand
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B
Deposit
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C
Loan
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D
Supply
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Solution
The correct option is D Supply The control of credit means controlling the flow of credit by controlling the demand and supply of money in an economy. Controlling credit is an important function and responsibility of the Reserve Bank of India (RBI). The RBI undertakes this function to control the price levels and inflation of various goods and services in India.