Question

Which one is a qualitative measure of credit control? *
1 point
(a) Bank rate
(b) Open market operation
(c) CRR
(d) Margin requirement

Answer 1

Answer:

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.

Explanation:

Hope it is helpful for you☺️☺️

Answer 2

Which one is a qualitative measure of credit control? *

(a) Bank rate

(b) Open market operation

(c) CRR

(d) Margin requirement

The correct answer is :

(c) CRR

Explanation :

Consumer credit regulation (CRR) refers to a personal loan taken by a consumer for the purchase of goods or services to satisfy his needs. The regulation of consumer credit serves as a control measure over the quality of the central bank.

Consumer credit also regularises consumer credit on a certain relative product to regulate uncertain market conditions at times of inflation or situation. Consumer credit helps in checking credit utilisation and inflation in a country.

#SPJ3