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Question
State with reason whether you agree or disagree with the following statement.
Credit control is the function of the Central Bank of the country.
Solution
Yes, the above statement is correct. Credit control refers to the control on the quantum of credit and the direction of its flow in the economy. This is done to achieve growth with stability. Therefore, we can say that credit control is the function of the central bank of a country. The Central Bank can use various quantitative and qualitative measures for controlling credit in the economy.
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RELATED QUESTIONS
Overdraft facility is provided to saving account holders.
Bank rate is a quantitative measure of credit control.
Bank rate is a quantitative measure of credit control.
Match the following:
| Group 'A' | Group 'B' |
| (1) Adam Smith | (1)Private monopoly |
| (2) Railway | (2) Father of economics. |
| (3) Legal tender money | (3) Public monopoly |
| (4) D-mat account | (4) Principles of economics |
| (5) Bank rate | (5)Buying and selling of shares. |
| (6) Quantitative tool of credit control. | |
| (7) Fiat money | |
| (8) Selective method of credit control |
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Qualitative credit control methods of the Central Bank.
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