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Question : 15
Total: 24
Distinguish between 'Qualitative and Quantitative tools' of credit control as may be used by a Central Bank.
Solution:
| Quantitative Control Tools of Credit | Qualitative tools of credit control |
|---|---|
| (i) It regulates the volume of credit. | It regulates the flow of credit. |
| (ii) These are the general tools to control the credit. | These are the specific tools to control the credit. |
| (iii) It includes - Bank rate, CRR, SLR, open market operations etc. | It includes - margin requirements, moral suasion etc. |
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