CA Foundation Exam > CA Foundation Questions > Which of the following does not come under qu...
Start Learning for Free
Which of the following does not come under quantitative methods of monetary policy?
- a)Repo rate
- b)Moral suasion
- c)Cash reserve ratio
- d)Open market operation
Correct answer is option 'B'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
Which of the following does not come under quantitative methods of mon...
Moral suasion is a qualitative method, and other options are quantitative methods of monetary policy.
Most Upvoted Answer
Which of the following does not come under quantitative methods of mon...
Quantitative methods of monetary policy
Quantitative methods of monetary policy refer to the tools used by central banks to control the money supply in an economy. These tools include the following:
Repo rate
- The repo rate is the rate at which the central bank lends money to commercial banks. By adjusting the repo rate, the central bank can influence the cost of borrowing for banks, which in turn affects the overall money supply in the economy.
Cash reserve ratio
- The cash reserve ratio (CRR) is the percentage of deposits that banks are required to hold as reserves with the central bank. By changing the CRR, the central bank can control the amount of money that banks have available for lending.
Open market operations
- Open market operations refer to the buying and selling of government securities by the central bank. When the central bank buys securities, it injects money into the economy, increasing the money supply. Conversely, when it sells securities, it reduces the money supply.
Moral suasion
- Moral suasion is not a quantitative method of monetary policy. It involves the central bank using persuasion and informal pressure to influence the behavior of banks and other financial institutions. While moral suasion can be a powerful tool in shaping market expectations, it does not directly impact the money supply in the same way that repo rates, CRR, and open market operations do.
Attention CA Foundation Students!
To make sure you are not studying endlessly, EduRev has designed CA Foundation study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CA Foundation.
|
Explore Courses for CA Foundation exam
|
|
Similar CA Foundation Doubts
Top Courses for CA FoundationView all
Which of the following does not come under quantitative methods of monetary policy?a)Repo rateb)Moral suasionc)Cash reserve ratiod)Open market operationCorrect answer is option 'B'. Can you explain this answer?
Question Description
Which of the following does not come under quantitative methods of monetary policy?a)Repo rateb)Moral suasionc)Cash reserve ratiod)Open market operationCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following does not come under quantitative methods of monetary policy?a)Repo rateb)Moral suasionc)Cash reserve ratiod)Open market operationCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following does not come under quantitative methods of monetary policy?a)Repo rateb)Moral suasionc)Cash reserve ratiod)Open market operationCorrect answer is option 'B'. Can you explain this answer?.
Which of the following does not come under quantitative methods of monetary policy?a)Repo rateb)Moral suasionc)Cash reserve ratiod)Open market operationCorrect answer is option 'B'. Can you explain this answer? for CA Foundation 2025 is part of CA Foundation preparation. The Question and answers have been prepared according to the CA Foundation exam syllabus. Information about Which of the following does not come under quantitative methods of monetary policy?a)Repo rateb)Moral suasionc)Cash reserve ratiod)Open market operationCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for CA Foundation 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Which of the following does not come under quantitative methods of monetary policy?a)Repo rateb)Moral suasionc)Cash reserve ratiod)Open market operationCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Which of the following does not come under quantitative methods of monetary policy?a)Repo rateb)Moral suasionc)Cash reserve ratiod)Open market operationCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for CA Foundation.
Download more important topics, notes, lectures and mock test series for CA Foundation Exam by signing up for free.
Here you can find the meaning of Which of the following does not come under quantitative methods of monetary policy?a)Repo rateb)Moral suasionc)Cash reserve ratiod)Open market operationCorrect answer is option 'B'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
Which of the following does not come under quantitative methods of monetary policy?a)Repo rateb)Moral suasionc)Cash reserve ratiod)Open market operationCorrect answer is option 'B'. Can you explain this answer?, a detailed solution for Which of the following does not come under quantitative methods of monetary policy?a)Repo rateb)Moral suasionc)Cash reserve ratiod)Open market operationCorrect answer is option 'B'. Can you explain this answer? has been provided alongside types of Which of the following does not come under quantitative methods of monetary policy?a)Repo rateb)Moral suasionc)Cash reserve ratiod)Open market operationCorrect answer is option 'B'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Which of the following does not come under quantitative methods of monetary policy?a)Repo rateb)Moral suasionc)Cash reserve ratiod)Open market operationCorrect answer is option 'B'. Can you explain this answer? tests, examples and also practice CA Foundation tests.
|
|
Explore Courses for CA Foundation exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup