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Questions
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.
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Solution
| 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.
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