General and selective credit control, Managerial Economics

Assignment Help:

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.


Related Discussions:- General and selective credit control

Scarcity, What is the role of scarcity in management decisions-making

What is the role of scarcity in management decisions-making

Wood planks producer show in the market, ChoppinAxe is a little Swedish fi...

ChoppinAxe is a little Swedish firm that produces wood planks and operates in a perfectly competitive market. Each firm in the market has the following total cost function:

#title., #Plot the demand schedule and draw the demand curve for the data g...

#Plot the demand schedule and draw the demand curve for the data given for Marijuana in the case above.question..

Sales maximization, how realistic is the sales maximisation model from your...

how realistic is the sales maximisation model from your experience with business objectives as persued by firms

Cause the equilibrium, a)      The production-possibilities curve is? b)...

a)      The production-possibilities curve is? b)      If there is a shortage in the provider of a product, we can conclude that its price: c)      An enhance in supply and a

The effects of globalization on indian industry, Indian industry has progre...

Indian industry has progressed a lot because of globalization. A lot of development has been seen in Indian industry.

Product differentiation, PRODUCT DIFFERENTIATION   Product differenti...

PRODUCT DIFFERENTIATION   Product differentiation describes a situation in which there is a single product being manufactured by several suppliers, and the product of each su

What is the nature of commodity, Q. What is the Nature of Commodity ? T...

Q. What is the Nature of Commodity ? The nature of a commodity as well has an effect on the price elasticity of its demand. Commodities can be characterised ascomforts, luxurie

Calculate the firms short-run total cost curve, A firm producing hockey sti...

A firm producing hockey sticks has a production function given by X = 2 KL In the short-run, the firm's amount of capital equipment is fixed at K = 1000. The rental rate fo

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd