Advertisements
Advertisements
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.
Distinguish between qualitative and quantitative measures of credit control.
Advertisements
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.
APPEARS IN
संबंधित प्रश्न
Which of the following is a selective/qualitative method of credit control?
Bank rate is the rate at which:
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 |
Observe the relationship of the first pair of words and complete the second pair.
Quantitative method of credit control by the central bank : Bank rate.
Quantitative method of credit control by the central bank :
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.
Read the following statements - Assertion (A) and Reason (R). Choose one of the correct alternatives given below:
Assertion (A): Bank rate is a quantitative instrument of monetary policy.
Reason (R): During inflation, RBI reduces the bank rate.
State the impact of an increase in Cash Reserve Ratio on loanable funds.
Define the following term:
Cash Reserve Ratio.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
Briefly explain the following credit control methods adopted by the Central Bank.
Moral persuasion
Central bank is the lender of the last resort. Explain.
The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.
Explain the following function of the central bank of a country.
Fixation of margin requirement on secured loans.
Which of the following statements are correct and which are incorrect? Give reasons.
- Central bank is a currency authority.
- Bank rate is a qualitative method of credit control.
- Quantitative methods regulate direction of credit.
- Bank rate is the rate at which commercial banks give loans to the public.
- Central bank should sell government securities when credit is to be expanded.
Who controls the credit supply in an economy?
Identify the following Credit Control measure undertaken by the Central Bank during inflation.
The Central Bank sells government approved securities to the public.
What are quantitative methods of credit control?
Which are qualitative methods of credit control?
Give an example of margin requirements.
