Which one of the following is not an instrument of credit control in the banking system?

Question

Quizplus · Accepted Answer

Tax rate is not an instrument of credit control in the banking system. Credit control instruments are primarily used by central banks to regulate the amount of money in circulation and include options like open market operations, cash reserve ratios, and the issuance or management of bonds and debentures. Tax rates are used by the government to influence the economy but are not a direct tool for controlling credit.

Which One of the Following Is Not an Instrument of Credit