Ans – (b)
Margin requirements is a qualitative method as it does not regulate the total volume of credit.
It is specific in nature as it affects the flow of credit for a particular use.
Thus qualitative methods of credit control are also known as selective methods of control.
If there is high inflation in the property market. The commercial bank can increase the margin requirements to control inflation.
The increase in the margin requirements discourages the public from taking loans as