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Discussion

What do we call the instruments of monetary policy which directly affect the quantity of money supply?

  • A.Quantitative instruments
  • B.Qualitative instruments
  • C.Money instruments
  • D.None of the above

Answer: A

The instruments of monetary policy which directly affect the quantity of money supply are called as Quantitative instruments. Example: Open Market Operations Liquidity Adjustment Facility (Repo and Reverse Repo) etc.

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