Credit Policy
Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Central Banking (Elective) — CAIIB.
One-liners from this chapter
Free sample — 8 of 56 rapid-fire Q&A cards.
Scope — Monetary Policy / Credit Policy?
Monetary Policy: Macro — total money supply (M0, M1, M3); Credit Policy: Narrower — supply & allocation of bank credit
Money/Credit Treatment — Monetary Policy / Credit Policy?
Monetary Policy: Money held as asset by public, liability of RBI/Govt; Credit Policy: Bank credit is asset of banks, liability of public/Govt
Focus — Monetary Policy / Credit Policy?
Monetary Policy: Aggregate demand & price stability; Credit Policy: Sectoral allocation, equity, growth
Instruments — Monetary Policy / Credit Policy?
Monetary Policy: Same (Repo, Reverse Repo, CRR, SLR, OMO); Credit Policy: Same + Selective Credit Controls
Why distinguish? — Monetary Policy / Credit Policy?
Monetary Policy: Analytical clarity; Credit Policy: Ensures targeted credit allocation by sector/region
Measurement — Nominal Credit / Real Credit?
Nominal Credit: At current prices; Real Credit: At a given base-year price level
Reflects — Nominal Credit / Real Credit?
Nominal Credit: Money value of credit; Real Credit: Purchasing power / productive capacity
In stable prices — Nominal Credit / Real Credit?
Nominal Credit: Equals real credit; Real Credit: Equals nominal credit
PDF study notes
More chapters in Module C - Monetary Policy and Credit Policy
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