Advertisements
Advertisements
Question
Answer the following question.
Discuss two qualitative methods of credit control.
Advertisements
Solution
(i) Credit Rationing: Rationing of credit is a method by which the Reserve Bank seeks to limit the maximum amount of loans and advances, and also in certain cases fix a ceiling for specific categories of loans and advances.
(ii) Moral Suasion: Moral suasion and credit monitoring arrangement are other methods of credit control. The policy of moral suasion will succeed only if the Reserve Bank is strong enough to influence the commercial banks.
APPEARS IN
RELATED QUESTIONS
Explain how ‘bank rate' is helpful in controlling credit creation?
Explain how 'margin requirements' are helpful in controlling credit creation?
Explain the 'currency authority' function of a central bank.
Central Bank has the sole power of issuing currency notes.
Define or explain the following concept.
Bank Rate.
Define or Explain the Bank Ratev ?
Define or explain the following concepts.
Clearing house
Match the following Group ‘A’ with Group ‘B’ :
|
Group ‘A’ |
Group ‘B’ |
||
| (a) |
Economics | (1) | not steady |
| (b) |
Reward of capital | (2) | 1 April, 1935 |
| (c) |
Value of money | (3) | Social science |
| (d) |
Establishment of Central Bank | (4) | Income from commodity tax |
| (e) | Sales tax | (5) | Natural science |
| (6) | Interest |
||
| (7) | 1 April, 1939 | ||
State whether the following statement is TRUE or FALSE.
Credit rationing is quantitative credit control measure of Central bank.
Give reason or explain.
Clearing house system economises the use of cash.
Distinguish between:
Quantitative Credit Control Measures and Qualitative Credit Control Measures
Answer the following question:
What are the various measures of quantitative credit control?
Answer the following question:
What are the various measures of qualitative credit control?
Answer the following question.
Explain the "varying reserve requirements" method of credit control by the central bank.
Who succeeded Shaktikanta Das as the RBI Governor after his term ended in December 2024?
Which statement best explains why the central bank should control both currency and credit?
