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Which of the following is not a quantitative method of credit control?

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Question

Which of the following is not a quantitative method of credit control?

Options

  • Open market operation

  • Margin requirements

  • Variable reserve ratio

  • Bank rate policy

MCQ
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Solution

Margin requirements

Explanation:

Margin requirements are a qualitative approach to credit control. They refer to the difference between the value of the collateral (security) and the loan amount approved, which is used to control the flow of credit to specified sectors or objectives. 

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Monetary Policy of the Central Bank
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Chapter 9: Central Banks - QUESTIONS [Page 212]

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Goyal Brothers Prakashan Economic Applications [English] Class 10 ICSE
Chapter 9 Central Banks
QUESTIONS | Q 8. | Page 212
Goyal Brothers Prakashan Economics [English] Class 10 ICSE
Chapter 8 Central Bank
Exercise | Q 8. | Page 157

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