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Which one of the following is not an instrument of credit control in the banking system ?

Tax rates are an instrument of fiscal (budgetary) policy administered by the Central and State Governments, not an instrument of monetary or credit control in the banking…

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Which one of the following is not an instrument of credit control in the banking system ?

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Correct answer D

Tax rates are an instrument of fiscal (budgetary) policy administered by the Central and State Governments, not an instrument of monetary or credit control in the banking system. Open market operations, moral suasion, and Cash Reserve Ratio (CRR) are credit control instruments administered by the Reserve Bank of India.

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