Central Bank — Economics STD 10 — Question

Basis 

Quantitative Methods 

Qualitative Methods 

(i) Nature 

These methods influence the total volume of credit. 

Qualitative measures influence the selective or particular uses of credit. 

(ii) Method 

These methods are non-discriminatory in nature. 

These are discriminatory in nature. 

(iii) Effect 

These methods affect the lenders. 

These methods affect both the lenders as well as the borrowers. 

(iv) 

These are indirect and impersonal. 

These are direct 

(v) Methods 

These methods include: 
(a) Bank Rate 
(b) Open Market Operations 
(c) Cash Reserve Ratio 
(d) Statutory Liquidity Ratio 

These methods include: 
(a) Consumer's Credit 
(b) Margin Requirements 
(c) Rationing of Credit 
(d) Moral Suasion 

(vi) Alternate name 

These methods are also called general methods of credit control. 

These are also called selective methods of credit control.