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Moral suasion and margin requirements are which kind of monetary policy tool?

AFiscal policy
BStatutory
CQualitative
DQuantitative
Answer & Solution
Correct answer: C. Qualitative
1. Quantitative tools change CRR, bank rate or open market operations. 2. Persuasion and margins are qualitative tools. 3. They encourage or discourage lending. _Source: syllabus Introductory Macroeconomics, Chapter 3, Money and Banking._
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