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

What is consumer demand , Consumer Demand is how much of something that co...

Consumer Demand is how much of something that consumers are wanting. A company requires to know the consumer demand so they know how much of a product to build.

ME, Is a “perfectly competitive market” an efficient mechanism for the allo...

Is a “perfectly competitive market” an efficient mechanism for the allocation of scarce resources? When it is, explain why. When it is not, document reasons for either inefficient

Difference between a static budget and a flexible budget, 1.  What is the d...

1.  What is the difference between a static (master) budget and a flexible budget? Ans:  static budget is where a budget doesn't change a volume changes.  An example could be th

Traditional theoretical concepts to business behaviour, Traditional theoret...

Traditional theoretical concepts to actual business behaviour Accommodating traditional theoretical concepts to actual business behaviour and conditions: Managerial economic

Explain about transaction cost theory, Q. Explain about Transaction Cost Th...

Q. Explain about Transaction Cost Theory? The below model reveals market and institutions as a possible form of organisation to coordinate economic transactions. When external

Describe models of oligopoly, Question 1: (a) Describe the argument tha...

Question 1: (a) Describe the argument that market entry erodes profits in the long run. (b) Give some reasons and discuss possible strategies used for profits to persist eve

With aid of evidence in the given article , with the of evidence comprehens...

with the of evidence comprehensively discuss the market structure in the south African mobile telecommunications industry

Individual and market demand schedule, Individual and market demand schedul...

Individual and market demand schedule The plan of the possible quantities that will be demanded at different prices by an individual is called Individual demand schedule. Su

Internal rate of return - incremental analysis, The following contains cost...

The following contains cost and benefit information for two different alternatives for a w capital investment in computerized process technologies to control the process at a manuf

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