Mathematics · Monetary Policy and Credit Control
Which of the following statements regarding credit creation and credit control instruments in the Indian banking system is/are correct? 1. In the banking system's credit creation process, the credit multiplier is represented by the formula 1r, where 'r' is the reserve ratio. 2. Margin requirements are qualitative credit control instruments used to regulate the direction and purpose of credit rather than its total volume. 3. Moral suasion is a quantitative tool through which the RBI issues formal legal directives to force commercial banks to expand credit to specific sectors. Select the answer using the code given below:
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