What are selective credit control methods?
Selective credit control refers to qualitative method of credit control by the central bank. The method aims, unlike general or quantitative methods, at the regulation of credit taken for specific purposes or branches of economic activity.
Which of the following is a selective control method?
Credit rationing is a selective qualitative credit control method.
Which of the following is a selective credit control?
1) Cash Reserve Ratio.
Which of the following is not an instrument of selective credit control?
Variable Reserve Ratio (Cash Reserve Ratio) is aimed to control only volume of credit (quantitative method) not both volume and purpose of credit for which bank gives loans.
What are the selective or qualitative credit control?
Under the selective or qualitative credit control methods, the RBI encourages flow of credit only to certain types of industries and discourages the use of bank credit for certain other purposes. Under this method, extension of credit to essential purposes is encouraged and to non-essential purposes is discouraged.
Which is not a quantitative method of credit control?
Quantitative tools, control the extent of the money supply by changing the CRR, or bank rate or open market operations. … 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 not a method of qualitative credit control?
This discussion on Which of the following is not a qualitative method of credit control? a)Credit Rationingb)Changes in cash reserve of Commercial banks. c)Publicity and Notificationd)Regulation of consumer credit. Correct answer is option ‘B’.
Which of the following is a general credit control?
Statutory Liquidity Ratio (SLR) is defined as the minimum percentage of assets, such as gold, cash or securities, which must be maintained by the commercial banks with the Central Bank. Central Bank uses it as a measure of credit control in the economy.
Which of the following is an example of selective instrument of credit control?
Rationing of Credit: Credit rationing is a selective method of controlling and regulating the purpose for which credit is granted by the commercial banks.
Which of the following is a selective credit control measure of RBI?
ADVERTISEMENTS: Quantitative or traditional methods of credit control include banks rate policy, open market operations and variable reserve ratio. Qualitative or selective methods of credit control include regulation of margin requirement, credit rationing, regulation of consumer credit and direct action.
Which among the following are major of credit control?
Methods of credit control
- Marginal requirement.
- Rationing of credit.
- Direct Action.
- Moral Suasion.
What is selective credit ratio?
Selective credit control means the discriminatory policy of the RBI in favour or against certain sectors of the economy. RBI may try to encourage flow of credit in the production of certain prioritised sectors with positive selective credit controls and may control flow of credit in the non-prioritised sectors.