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Question
Distinguish between the following :
Quantitative and Qualitative measures of credit control.
Solution
| Sr.No. | Quantitative Credit Control Measures | Qualitative Credit Control Measures |
| (i) | These credit control measures are used to control the volume of credit. | These credit control measures are used to control the flow of credit. |
| (ii) | Bank rate, open market operations and variable cash reserve ratio are examples of quantitative methods. | Regulation of margin requirement, regulation of consumer credit, direct action, issuing directives, moral suasion, credit rationing and publicity are some of the examples of qualitative methods. |
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