Match the items of List II with the items of List I:List IList II (a) Selective credit control (1)…
The matching is a-3, b-1, c-2, d-4. Margin requirements are a selective control, while consumer-credit regulations can redirect credit towards desirable uses by restricting…
Choose your answer
Match the items of List II with the items of List I:
| List I | List II |
|---|---|
| (a) Selective credit control | (1) Consumer credit regulations |
| (b) Encourage credit for desirable use | (2) Cash reserve ratio |
| (c) Quantitative credit control | (3) Variation in margin |
| (d) Bank rate | (4) Re-discounting rate |
Answer and explanation
Correct answer B
The matching is a-3, b-1, c-2, d-4. Margin requirements are a selective control, while consumer-credit regulations can redirect credit towards desirable uses by restricting particular consumption loans. The cash reserve ratio controls the overall availability of credit, and the bank rate is associated with rediscounting.
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Madhya Pradesh SET (MP SET)