General and selective credit control, Managerial Economics

General and Selective Credit Control

These are imposed with the full apparatus of the law or informally using specific instructions to banks and other institutions.  For instance, the central bank can dictate a ceiling value to the amount of deposits the bank can create.  This is more effective in controlling bank lending than the cash and liquidity ratio.  It can also encourage banks to lend more to a certain sector of the economy (e.g. agriculture) than in another (estate building).  Selective controls are especially useful in less developed investment away from less important sectors such as the construction of buildings, the commercial sector, or speculative purchase of land, towards more important areas.

Posted Date: 11/29/2012 4:54:38 AM | Location : United States







Related Discussions:- General and selective credit control, Assignment Help, Ask Question on General and selective credit control, Get Answer, Expert's Help, General and selective credit control Discussions

Write discussion on General and selective credit control
Your posts are moderated
Related Questions
To eliminate competition and thereby secure higher prices, firms producing a specific product can come together and make monopoly agreements. These are called as industrial combina

What are the tools of factor markets and the distribution of income? Tools of factor markets and the distribution of income: a. Factor distribution of income b. Marginal

What is Managerial economics according to McGutgan and Moye McGutgan and Moyer:  "Managerial economics is the application of economic theory and methodology to decision-making

APPROACHES TO MEASURING NATIONAL INCOME The compilation of national income statistics is a very laborious task.  The total wealth of a nation has to be added up and there are

Q. Explain the concept of demand function? Identical to the demand theory which pivots around the concept of demand function, theory of production revolves around the concept o

Features of Planned Economy The command economies relies exclusively on the state.  The government will decide what is made, how it is made, how much is made and how distribut

Average Propensity to save The Average Propensity to Save [APS] is defined as the fraction of aggregate national income which is devoted to savings.  Thus if S denotes savin

When is production profitable according to price-taking firm at profit, break-even or loss? Production profitable at profit, break-even or loss: a. When TR > TC, in that cas

A MATHEMATICAL APPROACH TO REVENUE AND COST FUNCTIONS Recall that TR = P x Q This implies that P(AR) = TR                                     Q For example, assuming

Use the data set cd costs2010 to estimate the marginal cost of one more CD. (Regress costs on the number of CDS.) Test the hypothesis that the marginal cost equals 75 cents. How wo