Which one of the following is not an instrument of credit control in India ?

Options

A. Rationing of credit
B. Direct Action
C. Open Market operations
D. Variable cost reserve ratios

Answer

D

Explanation

There are two methods that the RBI uses for credit control in the economy : Qualitative method (Marginal requirement , Rationing of credit , Direct action Moral Suasion , etc ) and Quantitative method (Bank rate , Open Market Operations Cash Reserve Ratio , Statutory Liquidity Ratio , etc).