When the RBI uses persuasion to convince banks to hold government securities instead of lending to certain sectors, it is called:
CA Foundation · Business Economics · PYQS · January 2026
When the RBI uses persuasion to convince banks to hold government securities instead of lending to certain sectors, it is called:
Suggested Answer and Working Notes:
Correct Answer: Option (D)
D. Moral Suasion
Topics: Money Market