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What do you mean by credit rationing? - Economics

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Question

What do you mean by credit rationing?

Short Answer
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Solution

Credit rationing is a tool used under selective credit control. Its purpose is to set a ceiling on the total amount of bank loans and advances and, in some cases, to specify the maximum limit of loans granted for particular purposes.

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Chapter 6: Banking - Model Questions [Page 123]

APPEARS IN

Samacheer Kalvi Economics [English] Class 12 TN Board
Chapter 6 Banking
Model Questions | Q 26. | Page 123
Frank Economics [English] Class 12 ISC
Chapter 22 Model Short Answer Questions
MODEL SHORT ANSWER QUESTIONS | Q 200. | Page 482
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