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_______________ controls affect indiscriminately all sectors of the economy.
- a)Selective credit.
- b)Quantitative.
- c)Margin requirements.
- d)None of the above.
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
_______________ controls affect indiscriminately all sectors of the ec...
Explanation:
The correct answer is B: Quantitative.
Quantitative controls refer to measures taken by the government or central bank to regulate the overall supply of money and credit in the economy. These controls affect all sectors of the economy indiscriminately. Here's a detailed explanation of each option:
- Selective credit: Selective credit controls refer to measures taken by the government or central bank to regulate the flow of credit to specific sectors or industries. These controls are targeted and do not affect all sectors of the economy indiscriminately.
- Quantitative: Quantitative controls, also known as monetary policy, involve actions such as changing interest rates, reserve requirements, and open market operations to control the money supply and credit availability in the economy. These controls are broad-based and affect all sectors of the economy.
- Margin requirements: Margin requirements are regulations set by regulatory authorities that determine the minimum amount of funds an investor must contribute to a transaction. Margin requirements are specific to the financial markets and do not affect all sectors of the economy indiscriminately.
- None of the above: This option is incorrect as the correct answer is B: Quantitative controls.
In conclusion, quantitative controls are the controls that affect all sectors of the economy indiscriminately.
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The correct answer is B: Quantitative.
Quantitative controls refer to measures taken by the government or central bank to regulate the overall supply of money and credit in the economy. These controls affect all sectors of the economy indiscriminately. Here's a detailed explanation of each option:
- Selective credit: Selective credit controls refer to measures taken by the government or central bank to regulate the flow of credit to specific sectors or industries. These controls are targeted and do not affect all sectors of the economy indiscriminately.
- Quantitative: Quantitative controls, also known as monetary policy, involve actions such as changing interest rates, reserve requirements, and open market operations to control the money supply and credit availability in the economy. These controls are broad-based and affect all sectors of the economy.
- Margin requirements: Margin requirements are regulations set by regulatory authorities that determine the minimum amount of funds an investor must contribute to a transaction. Margin requirements are specific to the financial markets and do not affect all sectors of the economy indiscriminately.
- None of the above: This option is incorrect as the correct answer is B: Quantitative controls.
In conclusion, quantitative controls are the controls that affect all sectors of the economy indiscriminately.
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_______________ controls affect indiscriminately all sectors of the economy.a)Selective credit.b)Quantitative.c)Margin requirements.d)None of the above.Correct answer is option 'B'. Can you explain this answer?
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