Distinguish between the following :
Quantitative and Qualitative measures of credit control.
|Sr.No.||Quantitative Credit Control Measures||Qualitative Credit Control Measures|
|(i)||These credit control measures are used to control the volume of credit.||These credit control measures are used to control the flow of credit.|
|(ii)||Bank rate, open market operations and variable cash reserve ratio are examples of quantitative methods.||Regulation of margin requirement, regulation of consumer credit, direct action, issuing directives, moral suasion, credit rationing and publicity are some of the examples of qualitative methods.|
Concept: Commercial Banks
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