What is moral suassion?
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Posted by Ayush Mishra 5 years, 5 months ago
- 2 answers
Gaurav Seth 5 years, 5 months ago
Moral suasion is a mixture of both persuasion and pressure. The central bank makes an attempt to persuade commercial banks to follow its directives of monetary policy or it can pressurise them to follow its policy directives. When it fails to work, the central bank can use direct action which includes non-recognition of a commercial bank.
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Lovely Dhawan 5 years, 5 months ago
0Thank You