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What are the tools used by RBI to control inflation? |
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Answer» Instruments of Monetary Policy are as follows: Quantitative or General Methods: • Bank Rate • Open Market Operations • Change in • Cash Reserve Ratio (CRR) • Statutory Liquidity Ratio (SLR) • Repo and Reverse Repo rates Qualitative or Selective Methods: • Selective Credit control • Rationing of credit • Moral Persuasion • Direct action |
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