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The Central Bank & Monetary Policy · Question 46 of 58

Match each tool with its type.

Question 46

MediumOriginal question

Match each tool with its type.

List IList II
A. Repo rateI. Qualitative: persuasion
B. Margin requirementII. Quantitative: reserve requirement
C. Cash Reserve RatioIII. Qualitative: selective
D. Moral suasionIV. Quantitative: price of credit
Options for question 46

Show the answer and explanation
CorrectNot quiteAnswer B

Correct answer: B

Explanation

  1. Quantitative tools change the total volume or cost of credit; qualitative tools direct credit to or away from particular uses.

Concept
Quantitative and qualitative tools
Typical time
90 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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