Question

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.

Answer 1

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: Bank Rate Open Market Operations Legal Reserve Requirements Cash Reserve Ratio Statutory Liquidity Ratio	These methods include: Consumer’s Credit Margin Requirements Rationing of Credit Moral Suasion