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
Q. What is Data mining? Data mining: Data mining is the process of extracting patterns from data. Data mining is seen as an increasingly important tool by modern business to

#question.Constraints of Marris’ Growth Maximisation Model

Question: i) The manager of Top Rock Company is introducing a new product that will yield $200 millions in profits if the economy does not go into recession. However, if a rec

INDIRECT TAXES These are imposed on an individual mostly producers or traders but they can be passed on to be borne by others usually the final consumers.  They can also be de

gap between economic theory and business practice

Define Williamson''s Model of Managerial Discretion practice?

State the difficulties in the measurement of profit.

measurement and scaling techniques in business research

Hawtrey views about Trade Cycle Hawtrey views trade cycle as a purely monetary phenomenon. According to him, inventory cycles result from fluctuations caused in the desired rat

How relevent is managerial dicretion in developing countries?