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Question

Quantitative measures to control credit are also called _____________.

A
General Measures
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B
Selective Methods
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C
Both (a) and (b)
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D
Neither (a) nor (b)
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Solution

The correct option is A General Measures

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

The correct option is A.


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