

MCQOPTIONS
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1. |
Which one of the following tools is used by RBI for selective credit control ? |
A. | It advises banks to lend against certain commodities |
B. | It advises banks to recall the loans for advances against certain commodities |
C. | It advises banks to charge higher rate of interest for advance against certain commodities |
D. | It discourages certain kinds of lending by assigning higher risk weights to loans it deems undesirable |
E. | None of these |
Answer» D. It discourages certain kinds of lending by assigning higher risk weights to loans it deems undesirable | |