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Question
Statement 1: The Bank Rate policy of the central bank is a traditional method of credit control.
Statement 2: The method used by the central bank to influence the total volume in the banking system is a quantitative method of credit control.
Options
Statement 1 is true and Statement 2 is false.
Statement 1 is false and Statement 2 is true.
Both Statements 1 and 2 are true.
Both Statements 1 and 2 are false.
Solution
Both Statements 1 and 2 are true.
Explanation:
Both statements relate to monetary policy tools utilized by central banks to control and regulate the money supply and credit conditions in the economy.
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