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The Central Bank & Monetary Policy · Question 45 of 58

Question 45

MediumOriginal question

The RBI raises the margin requirement on loans against stocks of food grains. The likely aim is to

Options for question 45

Show the answer and explanation
CorrectNot quiteAnswer C

Correct answer: C

Explanation

  1. A higher margin means less can be borrowed against each sack, so hoarding becomes harder.

  2. This is a selective (qualitative) tool aimed at one use of credit.

Concept
Selective credit control
Typical time
70 s
Your time
—
The rule this testsMargin requirements and moral suasion
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Ten questions from The Central Bank & Monetary Policy, at your own pace.

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Ten questions from The Central Bank & Monetary Policy, at your own pace.

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