Question

Distinguish between 'quantitative and qualitative measures of credit control'.

Answer 1

Credit control refers to various central bank policies which includes both qualitative as well as quantitative measures that regulates various factors that influence domestic currency directly or indirectly like money supply, interest rates and credit availability in the economy. The quantitative measures include two rate and two ratio policies as well as open market operation whereas qualitative measures include margin requirement, rationing of credit and Moral suasion.