State with reasons whether you agree or disagree with the following statements. 3. Credit control is the function of the Central Bank of the country.

State with reasons whether you agree or disagree with the following statements.
3. Credit control is the function of the Central Bank of the country.

Answer: 

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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