Question

Which of the following are Qualitative Methods of Credit Control?

• A. Regulation of Consumer Credit
• B. Issue of Directives to Commercial Banks
• C. Credit Rationing
• D. All of the above

Answer 1

Answer: (D)

All of the above

Qualitative Controls to limit the nature or variety of an item rather than its quantity; e.g., regarding capital, a qualitative control would limit the type of loans but not the amount of lending. The qualitative or selective methods are concentrating in the direction of the distraction of credit into particular uses or channels in the economy. Their purpose is mostly to control and control the flow of credit into particular industries or businesses.

The correct option is D.