मराठी

Differentiate between quantitative and qualitative methods of credit control.

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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.

Distinguish between qualitative and quantitative measures of credit control.

फरक स्पष्ट करा
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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:

  1. Bank Rate
    Open Market Operations
    Legal Reserve Requirements
    • Cash Reserve Ratio
    • Statutory Liquidity Ratio

These methods include:

  1. Consumer’s Credit
  2. Margin Requirements
  3. Rationing of Credit
  4. Moral Suasion
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Notes

Students should refer to the answer according to their questions.

Monetary Policy of the Central Bank
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संबंधित प्रश्‍न

Define bank rate.


The rate of which commercial banks borrow from the Central Bank is the:


Explain how credit rationing helps to control credit in an economy.


Which of the following is not a quantitative method of credit control?


In order to encourage investment in the economy, the central bank may ______.


The process of buying and selling of securities by the central bank of a country is known as ______.


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 : 


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.


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.


What is meant by open market operations?


State the impact of an increase in Cash Reserve Ratio on loanable funds.


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.


What is the credit supply policy in an economy called?


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?


Give an example of margin requirements.


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