Bank rate
Open market activities
Variable fund ratio
Credit rationing/rationing of credit
Answer is Right!
Answer is Wrong!
The correct answer is D. Credit rationing/rationing of credit.
Quantitative credit control is a monetary policy tool that uses direct measures to control the amount of money in circulation. The three main measures of quantitative credit control are:
- Bank rate: The bank rate is the interest rate that the central bank charges commercial banks for loans. By raising or lowering the bank rate, the central bank can influence the amount of money that commercial banks lend to businesses and consumers.
- Open market activities: The central bank can buy or sell government bonds in the open market. When the central bank buys bonds, it injects money into the economy. When 288 64S117.2 64 74.6 75.5c-23.5 6.3-42 24.9-48.3 48.6-11.4 42.9-11.4 132.3-11.4 132.3s0 89.4 11.4 132.3c6.3 23.7 24.8 41.5 48.3 47.8C117.2 448 288 448 288 448s170.8 0 213.4-11.5c23.5-6.3 42-24.2 48.3-47.8 11.4-42.9 11.4-132.3 11.4-132.3s0-89.4-11.4-132.3zm-317.5 213.5V175.2l142.7 81.2-142.7 81.2z"/> Subscribe on YouTube