1.

What are the tools used by RBI to control inflation?

Answer»

Instruments of Monetary Policy are as follows:

Quantitative or General Methods:

• Bank Rate 

• Open Market Operations 

• Change in 

• Cash Reserve Ratio (CRR) 

• Statutory Liquidity Ratio (SLR) 

• Repo and Reverse Repo rates

Qualitative or Selective Methods: 

• Selective Credit control 

• Rationing of credit 

• Moral Persuasion 

• Direct action



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