If the RBI wants to control the speculation on the price of essential commodities, adopted a measure known as
A)Open market Operations.
B)Credit monitoring Arrangement
C)Selective credit control
D)Moral suasion.

Question

Quizplus · Accepted Answer

Selective credit control is a method used by central banks to regulate and control credit flow for specific purposes, such as controlling speculation on the prices of essential commodities. This approach allows the central bank to restrict the amount of credit available for speculative activities, thereby helping to stabilize prices.

If the RBI Wants to Control the Speculation on the Price