Gujarat BoardEnglish MediumSTD 12 CommerceEconomicsBANKING AND MONETARY POLICY3 Marks
Question
What do you mean by Quantitative and Qualitative measures of monetary policy?
✓
Answer
There are two types of instruments or say measures of monetary policy.
They are:
$(A)$ Quantitative measures and
$(B)$ Qualitative measures.
$(A)$ Quantitative measures:
Quantitative measures are general measures that influence the overall economy i.e. measures that have an impact on the economy in general.
They are not bifurcated based on sectors or segments in the economy. They have a common impact in all the sectors.
$(B)$ Qualitative measures:
Qualitative measures are those measures which are selected by $RBI$ based on the impact of credit for development of certain sectors or segments of the economy.
These measures have unique impact on the certain sector and unlike quantitative measures do not impact all sectors present of the economy.
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