English

Differentiate between quantitative and qualitative methods of credit control.

Advertisements
Advertisements

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.

Distinguish between qualitative and quantitative measures of credit control.

Distinguish Between
Advertisements

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:

  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
shaalaa.com

Notes

Students should refer to the answer according to their questions.

Monetary Policy of the Central Bank
  Is there an error in this question or solution?
Chapter 14: Banks: Commercial Bank and Central Bank - TEST YOURSELF QUESTIONS [Page 274]

APPEARS IN

Frank Economics [English] Class 12 ISC
Chapter 14 Banks: Commercial Bank and Central Bank
TEST YOURSELF QUESTIONS | Q 18. | Page 274
Frank Economics [English] Class 12 ISC
Chapter 14 Banks: Commercial Bank and Central Bank
TEST YOURSELF QUESTIONS | Q 8. a. | Page 275
Frank Economics [English] Class 12 ISC
Chapter 22 Model Short Answer Questions
MODEL SHORT ANSWER QUESTIONS | Q 197. | Page 481
Goyal Brothers Prakashan Economic Applications [English] Class 10 ICSE
Chapter 9 Central Banks
QUESTIONS | Q 10. | Page 234
Goyal Brothers Prakashan Economics [English] Class 10 ICSE
Chapter 8 Central Bank
Exercise | Q 9. (i) | Page 191
Goyal Brothers Prakashan Economic Applications [English] Class 10 ICSE
Chapter 9 Central Banks
QUESTIONS | Q 16. (b) | Page 234
Goyal Brothers Prakashan Economic Applications [English] Class 10 ICSE
Chapter 9 Central Banks
QUESTION BANK | Q 17. | Page 237

RELATED QUESTIONS

Define bank rate.


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


During deflation, the Central Bank usually ______.


The central bank controls credit _____ .


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): Bank rate is a quantitative instrument of monetary policy.

Reason (R): During inflation, RBI reduces the bank rate.


Define the term Statutory Liquidity Ratio.


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


Define the following term:

Margin Requirements.


Briefly explain the following credit control method adopted by the Central Bank.

Publicity


Central bank is the lender of the last resort. Explain.


The Central Bank is the apex monetary institution of the country. Explain its role of a custodian of foreign exchange reserves.


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 do you mean by credit control?


Define moral persuasion.


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×