Advertisements
Advertisements
Question
______ is a quantitative method of credit control.
Options
Bank rate
Cash reserve ratio
Credit rationing
Both Bank rate and Cash reserve ratio
Advertisements
Solution
Both Bank rate and Cash reserve ratio is a quantitative method of credit control.
Explanation:
The Bank Rate and the Cash Reserve Ratio (CRR) are quantitative methods of credit control used by the central bank to regulate the total money supply in the economy.
RELATED QUESTIONS
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 rate of which commercial banks borrow from the Central Bank is the:
Explain how credit rationing helps to control credit in an economy.
The central bank controls credit _____ .
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 :
Define the term Statutory Liquidity Ratio.
State the impact of an increase in Cash Reserve Ratio on loanable funds.
Differentiate between quantitative and qualitative methods of credit control.
Define the following term:
Cash Reserve Ratio.
Briefly explain the following credit control method adopted by the Central Bank.
Publicity
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.
What do you mean by credit control?
Which are qualitative methods of credit control?
Define moral persuasion.
Give an example of margin requirements.
