Financial Awareness - Risk, Stability & Emerging Finance
Which of the following is a monetary control tool used by the RBI to regulate credit in the economy?
Which of the following is a monetary control tool used by the RBI to regulate credit in the economy?
easy Q12 of 15
Step-by-Step Solution
Step 1: Understand monetary control tools
The question asks about RBI's tools to regulate credit and money supply.Step 2: Analyze options
CRR is a key monetary policy tool used by RBI to control liquidity. GST, Fiscal Deficit, and Income Tax are government fiscal measures, not RBI tools.Final Answer:
Cash Reserve Ratio (CRR) → Option DQuick Check:
RBI monetary control tool = Cash Reserve Ratio ✅
Quick Trick: CRR is always related to RBI's liquidity control.
Common Mistakes:
- Confusing fiscal measures with RBI's monetary tools.
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