Quick Answer: What are the quantitative measures of credit control?

Which of these is a quantitative method of credit control?

The important quantitative methods of credit control is (a) bank rate. The methods used by the central bank to regulate the flows of credit into particular directions of the economy are called qualitative or selective methods of credit control.

What is credit control measures?

Credit control is a business strategy that promotes the selling of goods or services by extending credit to customers. Most businesses try to extend credit to customers with a good credit history so as to ensure payment of the goods or services.

Which of the following is the quality measure of credit control?

The quantitative measures of credit control are bank rate, open market operations, cash reserve ratio, and statutory liquidity ratio. “Bank rate” is the “official interest rate” at which RBI re-discounts the approved bills that are held by commercial banks.

How is quantitative credit control different from qualitative credit control?

Quantitative controls aim at regulating the overall volume of bank credit, rather the particular made use of it. ‘Selective’ or ‘Qualitative’ controls may have an important direct impact on particular sectors of the economy. But their effectiveness is limited. … However, selective credit controls have own merits.

IT IS INTERESTING:  What happens if you do not renew your mortgage?

What does meant by quantitative instrument of credit control policy?

Quantitative credit control is a measure used by the central bank to influence the total volume of credit in the banking system. The quantitative credit controls are as follows: 1) Bank rate policy: Bank rate policy is used as the main instrument of monetary control during the period of inflation.

Which of the following is not the quantitative measures of credit control?

Qualitative tools include persuasion by the Central bank in order to make commercial banks discourage or encourage lending which is done through moral suasion, margin requirement, etc. Hence, it is clear that the Margin requirement of loan is not a quantitative instrument for credit control by the Central Bank.

Which of the following is a quantitative measure to control the money supply in the country *?

Reverse repo rate is the rate at which the central bank of a country (Reserve Bank of India in case of India) borrows money from commercial banks within the country. Controls money supply.

Which of the following is are the quantitative instrument of RBI?

To control the cost and quantity of credit, quantitative tools are adopted by the Reserve Bank of India (RBI). The quantitative tools are the indirect tools viz. OMO, bank rate, SLR, CRR, repo rate, etc.