GCEEconomicsMoney and Banking2022

Which of the following is NOT a qualitative instrument of monetary policy?

ACredit rationing
BMoral suasion
COpen market operationsCORRECT
DSelective credit control
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Why the answer is C, and why the others tempt you.
Open market operations — the buying and selling of government securities by the Central Bank — is a quantitative (general) instrument of monetary policy because it affects the overall volume of credit in the economy. Qualitative instruments, such as moral suasion, credit rationing, and selective credit control, target the direction and purpose of credit rather than its total quantity.
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