Question

8. Distinguish between quantitative and qualitative methods of credit control. Briefly explain any two
quantitative and any two qualitative credit control instruments.​

Answer 1

Answer:

Quantitative controls aim at regulating the overall volume of bank credit, rather the particular made use of it. 'Selective' or 'Qualitative' controls may have an important direct impact on particular sectors of the economy. But their effectiveness is limited.

Explanation:

Quantitative or traditional methods of credit control include banks rate policy, open market operations and variable reserve ratio. Qualitative or selective methods of credit control include regulation of margin requirement, credit rationing, regulation of consumer credit and direct action.