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What is meant by the qualitative method of credit control?

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Question

What is meant by the qualitative method of credit control?

Short Answer
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Solution

The qualitative method of credit control refers to the measures used by the Central Bank to regulate the use of credit in different sectors of the economy. It does not alter the total money supply but ensures that credit is channelled towards productive purposes.

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Chapter 9: Central Banks - QUESTIONS [Page 234]

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Goyal Brothers Prakashan Economic Applications [English] Class 10 ICSE
Chapter 9 Central Banks
QUESTIONS | Q 16. (a) | Page 234
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