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DISTINCTION BETWEEN QUANTITATIVE AND

QUALITATIVE METHODS OF CREDIT


CONTROL
QUANTITATIVE METHODS QUALITATIVE METHODS
Methods which regulate the volume of credit in the Methods which regulate the flow and direction of
entire economy. credit in certain selective sections of the society.

Non – discriminatory in nature. Discriminatory in nature.

Types of quantitative methods: Types of qualitative methods:


 Bank rate policy  Margin requirement
 Open market operations  Regulation of consumer credit
 Cash reserve ratio – CRR  Moral suasion
 Statutory Liquidity Ratio - SLR  Credit rationing
 Control through directives
 Direct action
 Publicity
Affect the entire economy. Affect traders and consumers only.

Also called General methods of credit control. Also called selective methods of credit control.