Methods of Credit Control
Quantitative measures of credit control are those which affect the overall supply of money in an economy. These measures do not restrict the flow of credit to some specific sectors of the economy.
Economics
Central Banking
A Central Bank is the apex bank which controls the entire banking system of a country. It has the sole
authority to issue notes in that country. It also acts as a banker to the government and controls the supply of money in the country.
Barter System & it’s Drawbacks
The barter system is a system where goods were exchanged for goods in the olden days. The sale and purchase of goods occur at the same time, and their value also remains equal at that point.
Meaning and Functions of Money
Money is a thing which is commonly accepted as a medium of exchange. Money is an instrument which serves as a medium of exchange, a measure of value, a store of value and a standard for deferred payments.
Taxes ~ Direct & Indirect Taxes
Taxes are very significant to generate revenue for financing developmental programmes. A tax is a compulsory payment imposed on persons or companies by the government to meet the expenditure incurred on providing common benefits to the people.
Public Revenue
Public revenue refers to the income or earnings of the government of any country. It is very significant for financing developmental programmes such as construction of roads, railways, schools and hospitals.
Elasticity of Demand
The elasticity of demand measures the responsiveness of the quantity demanded for a good to a change in its price, price of other goods and changes in the consumer’s income.
Commercial Bank
A commercial bank is a financial institution which provides services such as accepting deposits, giving business loans, mortgage lending and basic investment products such as savings account and certificates of deposit.