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.
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
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:
The central bank controls credit _____ .
Which of the following is not a quantitative method of credit control?
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 ______.
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.
Give any two reasons as to why a country needs a central bank.
What is meant by open market operations?
Define the following term:
Cash Reserve Ratio.
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.
Identify the following Credit Control measure undertaken by the Central Bank during inflation.
The Central Bank sells government approved securities to the public.
Which are qualitative methods of credit control?
Define moral persuasion.
