Distinguish between 'Qualitative and Quantitative tools' of credit control as may be used by a Central Bank.
|Basis||Quantitative Tools||Qualitative Tools|
|Definition||Quantitative instruments of monetary policy are the measures that affect the overall supply of money/credit in the economy.||Qualitative instruments of monetary policy, as against the quantitative instruments affect the flow and direction of credit to particular sectors in a positive or negative manner.|
|Tools||Bank rate, Open Market Operations, Cash Reserve Ratio, Statutory Liquidity Ratio are the quantitative tools used to control the credit.||Margin Requirements, Moral Suasion, Selective Credit Control, Direct Action, Rationing of Credit are the qualitative tools used to control the credit.|
Concept: Central Bank Function - Controller of Credit
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