The Bank of England Experienced Difficulties in Controlling the 1980s

Multiple Choice

The Bank of England experienced difficulties in controlling the 1980s credit boom. One of the reasons was that the Conservative government would not allow the Bank of England to suggest to banks that they should be more prudent in their lending to private individuals. This practice of asking the commercial banks to do things which might reduce their profits was known as

A) monetary control.
B) moral suasion.
C) open market operations.
D) exchange control.