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Which of these is a quantitative tool of monetary control?
AMargin requirement
BSelective credit advice
COpen market operations
DMoral suasion
Answer & Solution
Correct answer: C. Open market operations
1. Quantitative tools change the overall extent of money supply.
2. They are the CRR, the bank rate and **open market operations**.
3. Qualitative tools work by influencing the direction of lending instead.
4. Moral suasion and margin requirements are qualitative, so all three distractors sit on the other side of that split.
_Source: NCERT Class 12 Introductory Macroeconomics, Ch 3 "Money and Banking", section 3.4 POLICY TOOLS TO CONTROL MONEY SUPPLY_
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