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Money and Banking — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsMoney and Banking4 Marks
Question
Differentiate between quantitative and qualitative instruments of credit control.Differentiate between quantitative and qualitative instruments of credit control.
✓

Answer

S. No. Basis
Quantitative Instruments
Qualitative Instruments
1. Meaning
These are the instruments of monetary policy that affect overall supply of money credit in the economy.
These instruments are used to regular the direction of credit.
2. Alternative Name
Traditional methods of control.
Selective methods of control.
3. Instruments
(i) Bank rate.
(ii) Repo rate.
(iii)
Reverse rapo rate.
(iv)
Open market operation.
(v)
Cash reserve ratio.
(vi) Statutory liquidity ration
(i) Marginal requirement.
(ii) Moral suasion.
(iii) Selection credit control.

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