Distinguish between:
2. Quantitative Credit Control Measures and Qualitative Credit Control Measures
Basis
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Quantitative Credit Control Measures
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Qualitative Credit Control Measures
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Affect
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Instruments of these measures have an effect on the entire economy.
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Instruments of these measures have an effect only on some individuals or parties and not on the entire economy.
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Uses
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These measures are used to affect the quantum of credit in the economy.
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These measures are used to affect the use of credit.
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Techniques
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Some examples of quantitative techniques are Cash Reserve Ratio, Statutory Liquid Ratio, Bank Rate etc.
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Some examples of qualitative techniques are Selective Credit Control, Moral Suasion, Rationing of Credit etc.
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