Question

discuss the quantitative methods of credit control at the disposal of the central bank (5 marks question)​

Answer 1

Answer:

The quantitative methods of credit controls :-

1) CRR:- crr is the percentage of cash which can be reserved y commercial banks and given by rbi.

2) bank rate :- The rate of interest in which rbi give loan to commercial banks.

3) repo rate:- Same as bank rate but security are added in this.

4) reverse repo rate:- opposite of repo rate.