Credit Control Method

Which of the following credit control methods regulated by the Reserve Bank of India is not a Quantitative method?

  1. Bank Rate
  2. Margin requirements
  3. CRR
  4. Repo Rate
  5. Open Market Operation
Desire Adnan Default Asked on 5th August 2015 in Finance.
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1 Answer(s)

Open Market Operation

There are two credit control measures used by the Reserve Bank of India first is Quantitative control to regulates the volume of total credit and second is Qualitative Control to regulates the flow of credit. Margin Requirements (difference between the securities offered and amount borrowed by the banks) is a qualitative measure. Credit Control play a significant role in the monetary policy used to control the demand and supply of money in the economy.

Monis Rasool Professor Answered on 5th August 2015.
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