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Quantitative and qualitative methods of credit control?
1.Quantitative a)Rate of bank interest b)Open market operation c)Variable Reserve Ratio 2.Qualitative a)Fixation of margin b)Regularisation of consumer credit c)Control of bank advance d)Moral suasion - "a liver with out teeth" e)Publicity
What are three quantitative measures that can be applied to the collection policy of the firm?
a. Average collection period = Accounts receivable/Average daily credit sales An increase in the average collection period may be the result of a predetermined plan to expand credit terms or the consequence of poor credit administration. b. Ratio of bad debts to credit sales. An increasing ratio may indicate too many weak accounts or an aggressive market expansion policy. c. Aging of accounts receivable. Aging of accounts receivable is one way of finding out if customers are paying their bills within the time prescribed in the credit terms. If there is a buildup in receivables beyond normal credit terms, cash inflows will suffer and more stringent credit terms and collection procedures may have to be implemented.
What powers are given to the legislature?
The legislature has the power to borrow money on the credit of the Unitied States, and with Indian Tribes, to establish an uniform Rule of Naturalization and uniform Laws on the subject of Bankruptcies throughout the United States. To coin Money, regulate the Value of foreign coin and fix standard of weights and measures. The legislature has the power to borrow money on the credit of the Unitied States, and with Indian Tribes, to establish an uniform Rule of Naturalization and uniform Laws on the subject of Bankruptcies throughout the United States. To coin Money, regulate the Value of foreign coin and fix standard of weights and measures.
What does a credit derivative refer to?
A credit derivative is a financial instrument which separates and transfers some of the credit risk of a loan. Some examples of credit derivatives are credit linked notes or credit default swaps.
Which parts of a credit history are most important for the calculation of credit score?
There are many aspects of your credit history that affect your credit score. 35% - Your Payment History - Credit cards, Telephone bills and other utility bills 30% - Amounts You Owe - Outstanding credit amounts in loans and credit cards 15% - Length of Your Credit History 10% - Types of Credit Used 10% - New Credit
How does monetary policy control the money supply?
through quantitative measures like CRR , Bank Rate Policy and Open Market Operations and Qualitative measures like Moral Suasion, Marginal Safety Requirements, Rationing Credit etc
Quantitative and qualitative methods of credit control?
1.Quantitative a)Rate of bank interest b)Open market operation c)Variable Reserve Ratio 2.Qualitative a)Fixation of margin b)Regularisation of consumer credit c)Control of bank advance d)Moral suasion - "a liver with out teeth" e)Publicity
What are the differences between quantitative and qualitative credit control measures in banks?
The main difference between the general and selective credit control methods is that the former influence the cost and overall volume of credit granted by banks. They affect credit related to the whole economy whereas the selective controls affect the flow of credit to only specified sector of the economy, wherein speculative tendency and rising trend of prices, due to excessive bank credit, is noticed.
What is credit authorization scheme?
Involves qualitative control of Reserve Bank of India-in 1965. Its not at present.
An instrument of qualitative credit control of India is?
Mainly there are three qualitative instruments:1. Open market operations2. Bank rate3. Cash reserve ratio
What is the basis of central bank why they control the flow of money?
The central bank uses 9 measures to control flow (credit flow) of money. It is divided into two QAUNTITATIVE MEASURES AND QUALITATIVE MEASURES. In quantitative measures,central bank give re-discounting facilities to there member banks(commercial bank).1)Central bank give BANK RATE.when central bank increases bank rate,commercial may increase the rate of interest on borrowing and this will discourage business man to borrow money and investment will also decreases.2)Open market operation in which buying and selling of securities.3)veriable reserve ratio in which central bank ask to keep CRR at the rate of 6% and SLR(statutory liquid ratio) at 24% with them self. In qualitative measures, central bank provide money to selected member banks and discard to banks who are responsible for unstable functioning of economy.1)Rationing credit. 2)Direct action. 3)Minimum secondary reserve ratio. 3)Regulation on consumer credit. 4)changes in MARGIN REQUIREMENT on securities loan. 5)moral suasion and publicity.
What is the difference between a goal and an objective in addiction field?
goal is open ended statement which an organisation want to accomplish without time and quantity. objective is with time and quantity Goals are broad measures of achievement. Objectives are quantitative or qualitative steps that will lead to an overall goal achievement. Example: I have a goal to reduce my credit card debt. My first objective is to make double payments on my gas card to pay it off in 2 months.
Is education quantitative or qualitative in statistics?
Education is an extremely broad concept. It could include everything from all the study needed to earn a PhD, being street-smart in cities like New York or London, or life skills credit being applied to an academic degree program. What matters is your operational definition of education, what the questions are that you are asking, and what kinds of answers you want your study to provide.If you are interested in most academic uses of the word education, then in all likelihood you will be looking more at quantitative data. But then again, if you are focusing on subjective opinions of education, there could be a qualitative piece.
Explain Credit control by RBI on commercial bank?
Credit Control of RBI(briefly) Need: 1.To encourage the priority sectors for overall growth 2.Fecilitate the flow of adequate volume of bank credit to its industry, Agriculture and trade 3.To keep Inflation pressure under check 4.To ensure that Credit is not diverted to undesirable purposes 5.To fecilitate the Development of Indian economic growth Types of credit control : 1)Quantitative Method 1.Bank rate policy: by controlling the ways and means advances to the govt. 2.Open Market operation: by controling Short term liquidity in the market. 3.variation of cash reserve ratio: by increasing or reducing CRR or SLR. 4.fixation of lending rate: control by Increasing or reducing the rate of primary or secondary lending rates 5.Credit sequeenze: by controlling the amount of bank credit at a certain limit and fixing maximum limit for commercial borrowings. 2)Qualitative Method 1.Fixation of Margin Requirement 2.Regulation of consumer credit 3.Rationing of credit 4.Prior authorisation of schemes 5.Moral sausion 6.Direct Action
Selective credit control?
pappu can't dance sala.............. is selective credit control.
Details about credit rating?
A credit rating evaluates the credit worthiness of an issuer of specific types of debt, specifically, debt issued by a business enterprise such as a corporation or a government. It is an evaluation made by credit rating agency of the debt issuers likelihood of default Credit ratings are determined by credit ratings agencies. The credit rating represents the credit rating agency's evaluation of qualitative and quantitative information for a company or government; including non-public information obtained by the credit rating agencies analysts. Credit ratings are not based on mathematical formulas. Instead, credit rating agencies use their judgment and experience in determining what public and private information should be considered in giving a rating to a particular company or government. The credit rating is used by individuals and entities that purchase the bonds issued by companies and governments to determine the likelihood that the government will pay its bond obligations.
What are the function of credit control department?
The functions of the credit control department include the effective and efficient control and collection of all income and debt management.
