Recommendation made by the Central Bank to the commercial banks in respect of their lending...
Recommendation made by the Central Bank to the commercial banks in respect of their lending policy is known as
- A) directives
- B) moral suasions
- C) advisory notes
- D) consolidation
Correct Answer: A) directives
Explanation
The question is asking about the recommendation made by the Central Bank to commercial banks regarding their lending policy. This means that the Central Bank gives advice or instructions to the commercial banks on how they should lend money to individuals and businesses.The correct option is A: directives. Directives are instructions or orders given by someone in authority. In this case, the Central Bank provides directives to commercial banks to guide them on how to set their lending policies.
The other options are not correct for this question. Option B, moral suasion, refers to the use of persuasion or moral influence to encourage certain behavior. Option C, advisory notes, are recommendations or suggestions given for consideration. Option D, consolidation, refers to the process of combining multiple things into a single, unified entity.
In summary, the recommendation made by the Central Bank to commercial banks regarding their lending policy is known as directives. The Central Bank provides instructions and guidance to the commercial banks on how they should lend money.