find the odd word out (5) Qualitative tools : Cash Reserve Ratio, Moral suasion, Credit rationing, Margin requirements​

Answers 2

Moral suasion is the answer.

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Cash reserve ratio is the odd one out.

It is so because cash reserve ratio is a quantitative tool of monetary policy whereas moral suasion, credit rationing and margin requirements are qualitative tools of monetary policy.

  1. Given are the qualitative tools of the monetary policy. These tell us about the direct of flow of credit to specific sectors.
  2. Quantitative tools of monetary policy tells us about the total money supply and credit in the economy.

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