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53. QUANTITATIVE CREDIT CONTROL
General Measures
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QUALITITATIVE CREDIT CONTROL
Selective Measures
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1.
Meaning
These
measures are directed towards influencing the total volume or credit in the
economy.
2.
Measures
Quantitative
Credit Control Measures include:
(a) Bank rate Policy
(b) Open Market Operation
(c) Cash Reserve Ratio
(d) Statutory Liquidity Ratio
3.
Purpose
Quantitative
Credit Control measures aim at controlling the total volume of credit. They
are devised to expand or contract the liquidity position of commercial banks.
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These measures are directed towards the
particular use of credit and not its total volume.
Qualitative
Credit Control Measures include:
(a)
Ceiling on Credit
(b)
Margin Requirements
(c)
Issue of Directives
(d)
Moral Suasion
Qualitative Measures aim at controlling the
use of purpose of credit. They are devised to provide funds for economic and
social developments.
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QUANTITATIVE CREDIT CONTROL General Measures QUALITITATIVE CREDIT CONTROL Selective Measures
