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प्रश्न
Differentiate between quantitative and qualitative methods of credit control.
Distinguish between qualitative and quantitative measures of credit control policy of a central bank.
Distinguish between quantitative and qualitative credit control instruments of the central bank.
State any two differences between quantitative and qualitative credit control policies.
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उत्तर
| S. No. | Basis | Quantitative Methods | Qualitative Methods |
| 1. | Nature | These methods influence the total volume of credit. | These methods influence the selective or particular use of credit. |
| 2. | Effect | These methods affect the lenders. | These methods affect both the lenders and the borrowers. |
| 3. | Nature | These methods are non-discriminatory in nature. | These are discriminatory in nature. |
| 4. | Direct/Indirect | These are indirect and impersonal. | These are direct. |
| 5. | Alternative name | These methods are also called general methods of credit control. | These are also called selective methods of credit control. |
| 6. | Methods |
These methods include:
|
These methods include:
|
Notes
Students should refer to the answer according to their questions.
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संबंधित प्रश्न
Briefly explain two qualitative methods of credit control adopted by this institution.
Which of the following is a selective/qualitative method of credit control.
The difference between the value of security and the amount of loan sanctioned against these securities is known as:
Define qualitative credit control policy of the RBI.
During deflation, the Central Bank usually ______.
In order to encourage investment in the economy, the central bank may ______.
Bank rate is the rate at which:
The process of buying and selling of securities by the central bank of a country is known as ______.
Match the following and select the correct option:
| Column A | Column B | ||
| (i) | A rate of interest at which the central bank (RBI) lends money to member commercial banks to meet they long term needs. | A. | Cash Reserve Ratio |
| (ii) | A rate of interest at which RBI lends money to commercial banks to meet their short term needs. | B. | Statutory liquidity ratio |
| (iii) | A minimum percentage of total deposits kept by banks with the Central Bank. | C. | Repo rate |
| (iv) | A minimum percentage of total deposits to be kept by banks inform of liquid assets with themselves. | D. | Bank rate |
During inflation, the central bank usually:
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Increase in cash reserve ratio adversely affects the capacity of commercial banks to create credit.
Reason (R): An increase in cash reserve ratio reduces the excess reserves of commercial banks and hence limits their credit creating power.
Give any two reasons as to why a country needs a central bank.
Define the term Statutory Liquidity Ratio.
State the impact of an increase in Cash Reserve Ratio on loanable funds.
Define the following term:
Cash Reserve Ratio.
Central bank is the lender of the last resort. Explain.
Explain the following function of the central bank of a country.
Fixation of margin requirement on secured loans.
Identify the following Credit Control measures undertaken by the Central Bank during inflation.
The Central Bank increases the rate at which it lends to the Commercial Bank.
What is meant by Legal Reserve Ratio?
Define moral persuasion.
