Moral suasion by the RBI means

fining banks that break rulesCorrect answerYour answerpersuading banks to follow its policyCorrect answerYour answerchanging the CRRCorrect answerYour answerbuying government securitiesCorrect answerYour answer

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CorrectNot quiteAnswer B

Correct answer: B

Moral suasion uses persuasion, not legal force.

Concept: Moral suasion
Typical timeTypical: 40 s
Your timeYours: —

The rule this testsMargin requirements and moral suasion

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Moral suasion by the RBI means

Explanation