1.

List down different quantitative and qualitative measures of monetary policy.

Answer»

There are two types of instruments or say measures of monetary policy.

(A) Quantitative measures and
(B) Qualitative measures.

(A) Quantitative measures:

  1. Bank rate
  2. Repo rate and reverse repo rate
  3. Stabilization under emergency situation
  4. Cash Reserve Ratio(CRR)
  5. Statutory Liquidity Ratio (SLR)
  6. Open Market Operation (OMOs)
  7. Sterilization of RBI accounts against shocks arising from the excessive increase or decrease in amount of foreign exchange

(B) Qualitative measures:

  1. Collateral security
  2. Margin requirement
  3. Ceiling on credit
  4. Discriminatory interest rates


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