Question
Explain any three methods of qualitative credit control.
✓
Answer
Two Qualitative Methods of credit control: The methods used by the RBI to regulate the flow of credit into particular directions of the economy are called qualitative methods.
(i) Margin Requirements: A margin is the difference between the amount of the loan and market value of the security offered by the borrowers against the loan. By changing the margin requirement, the central bank can alter the amount of loans made against securities by the banks.
(ii) Rationing of Credit: Rationing of credit means fixation of credit quotas for different sectors of the economy.
(i) Margin Requirements: A margin is the difference between the amount of the loan and market value of the security offered by the borrowers against the loan. By changing the margin requirement, the central bank can alter the amount of loans made against securities by the banks.
(ii) Rationing of Credit: Rationing of credit means fixation of credit quotas for different sectors of the economy.
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.
Explore more
Similar questions
(i) What is meant by the term 'Inflation'? What is its impact on debtors?
(ii) Explain the following:
1. Creeping inflation
2. Walking inflation
(ii) Explain the following:
1. Creeping inflation
2. Walking inflation
(a) Define inflation.
(b) Explain the effects of inflation on the following:
(i) Fixed income groups
(ii) Producers
(iii) Distribution of income
(b) Explain the effects of inflation on the following:
(i) Fixed income groups
(ii) Producers
(iii) Distribution of income
With the help of a graph, explain relatively inelastic demand for a commodity.
Define a perfectly competitive market. Discuss three differences between a perfectly competitive market and a monopoly.
With the help of a diagram explain the meaning of increase in supply and decrease in supply.
Analyse the given graphs and identify the type of elasticity of demand of:
Differentiate between direct and indirect taxes. Mention two merits and two demerits of direct taxes. ### Give any five points of differences between direct and indirect tax.
Give any five differences between product-based and process-based division of labour.
Describe the various duties of a consumer. ### What are the duties of a consumer? (Any five points) ### In the context of the sudden increase in consumer groups in India due to heightened awareness and instances of exploitation by private traders, what are the key duties and responsibilities that consumers should be mindful of to actively contribute to the consumer movement in the country?
Define capital. Differentiate the following with examples:
(i) Real capital and Debt capital
(ii) Money capital and sunk capital
(i) Real capital and Debt capital
(ii) Money capital and sunk capital