Which of the following methods cannot be used as an instrument of Quantitative Control of credit by the Central Bank?

Bank Rate Policy

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Open Market Operations

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Change in Margin Requirements

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Changes in Reserve Requirements

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Solution

The correct option is C Change in Margin Requirements
Change in margin requirements cannot be used as an instrument of Quantitative Control of credit by the Central Bank. Change in margin requirement is used as an instrument of Qualitative control of credit. The margin requirement refers to the difference between the current value of the security offered for loan and the value of loan granted.

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The RBI uses various quantitative and qualitative credit control measure. Which among the following are the quantitative measures?

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