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Questions
What are quantitative methods of credit control?
What is meant by quantitative credit control?
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Solution
The methods used by the central bank to influence the total volume of credit are called quantitative methods of credit control.
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RELATED QUESTIONS
Define bank rate.
The rate of which commercial banks borrow from the Central Bank is the:
Define qualitative credit control policy of the RBI.
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Match the following and select the correct option:
| Column A | Column B | ||
| (i) | A rate of interest at which the central bank (RBI) lends money to member commercial banks to meet they long term needs. | A. | Cash Reserve Ratio |
| (ii) | A rate of interest at which RBI lends money to commercial banks to meet their short term needs. | B. | Statutory liquidity ratio |
| (iii) | A minimum percentage of total deposits kept by banks with the Central Bank. | C. | Repo rate |
| (iv) | A minimum percentage of total deposits to be kept by banks inform of liquid assets with themselves. | D. | Bank rate |
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Quantitative method of credit control by the central bank : Bank rate.
Quantitative method of credit control by the central bank :
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Moral persuasion
Central bank is the lender of the last resort. Explain.
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