Economics · Monetary Policy
Under selective credit controls, the main objective of fixing a margin requirement on loans against specific commodities is to:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Provide universal bank credit to all sectors on an equal basis.
- 2Restrict bank credit extension to the government sector.
- 3Prevent speculative hoarding and price manipulation of sensitive essential commodities.✓
- 4Prevent speculative hoarding and trading of equity shares.
Correct answer
Prevent speculative hoarding and price manipulation of sensitive essential commodities.
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