Question

Which of the following is not a quantitative method of credit control __________________.

• A. Bank Rate policy
• B. Open market operations
• C. The Repo Rate
• D. Consumer credit regulation

Answer 1

Answer: (D)

Consumer credit regulation

Quantitative or traditional methods of credit control consist of banks rate policy, open market operations and variable reserve ratio. Qualitative or selective methods of credit control consist of the guideline of margin requirement, credit rationing, regulation of customer credit and direct action.

Quantitative controls are planned to control the volume of credit created by the banking system qualitative measures or selective methods are intended to regulate the flow of credit in specific uses.

The correct option is D.