Which of the following is not a Quantitative Method of Credit Control?
Which of the following is not a Quantitative Method of Credit Control?
(a) Open Market Operations
(b) Margin Requirements
(c) Variable Reserve Ratio
(d) Bank Rate Policy
Anurag Pathak Changed status to publish December 31, 2023
Ans – (b)
Explanation:-
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.
For example,
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
Anurag Pathak Changed status to publish December 31, 2023