Qualitatitive measures of credit control

Qualitatitive measures of credit control are also called selective measures of credit control. These measures refers to the measures which are directed towards the particular use of credit not its total volume. These measures consist of the following methods.

  1. Margin requirement: if the central bank increases its margin then it will reduce the money supply and on the other hand if the central bank decrease its margin then it will increase the money supply.
  2. Issue directions: the central bank also issue directions to the commercial banks in oral or written form which the commercial banks have to follow.
  3. Credit rationing: the central bank also rations the credit given by the commercial banks.
    Image courtesy  [Stuart Miles] at FreeDigitalPhotos.net
    Image courtesy [Stuart Miles] at FreeDigitalPhotos.net
  4. Moral suasion: is morally implied on the commercial banks to follow the rules and regulations by the central banks.
  5. Direct action: if the commercial banks don’t follow the rules and regulations of the central bank then central bank can take direct action against the commercial banks.

Continue reading “Qualitatitive measures of credit control”

Simple Meaning of NPA

Today I will discuss the meaning of very important term related to financial institutions like banks. The term is NPA and the full form of NPA is “Non-performing Asset”. Now a days we are daily reading or listening that banks NPAs are increasing on regular basis. Let us understand the meaning of NPA.

As the name suggests, it is that asset which is non performing or in other words which is not giving any return or even the principal amount. Continue reading “Simple Meaning of NPA”

6 Micro factors affecting Business Environment


An external factor which affects the business environment means the factor beyond the control of business. These can be broadly classified into micro and macro environment.

Micro Business Environment: It means the forces which are immediate close to the business organization and influence its functioning. It affects different firms in different ways depending upon its circumstances. Micro environment consists of following parameters: Continue reading “6 Micro factors affecting Business Environment”

Meaning and 6 Elements of Business Ethics


Meaning: Business ethics refers to the standards and principles which govern the business activities. It means doing business activities with rational thinking and honesty. A business requires ethics for its success. Now a days availability of proper safety measures for employees, satisfaction of consumers and protection of environment are modern business standards. Continue reading “Meaning and 6 Elements of Business Ethics”

Concepts and scope of Social Security

The word social security originated in USA in 1935. It means to help the people when they are unemployed and exposed to risk such as sickness, accidents, old age, maternity etc.

Scope of Social security:

It is in form of maternity benefits, health insurance, voluntary and compulsory insurance, provident fund schemes. These social security programs vary from country to country but have the following three common characteristics: Continue reading “Concepts and scope of Social Security”

Features and Criticism of Economics as a Science of wealth

Economics is considered as science of wealth as it is a study of the factors which are responsible for wealth generation. Thus in Economics we study a body of knowledge which relates to wealth. Economics as a science of wealth Economist Adam Smith, J. B. Say, John Mill, F. A. Walker and Riccardo. Adam Smith is known as a Father of Modern Economics and 1776, he has written a book called “An Enquiry into Nature and causes of wealth of Nation”. Continue reading “Features and Criticism of Economics as a Science of wealth”

Central Problems of an Economy

Human wants are unlimited and the resources to satisfy these wants are scarce. Every individual tries to satisfy more and more of his wants. The scarcity of resources in relation to wants give rise to the problem “how to use limited resources to get maximum satisfaction”. This give rise to problem of choice which means we have to select the best alternative among all. The central problems of an economy is further divided into four following basics problems: Continue reading “Central Problems of an Economy”

Meaning of standard costing

Standard costing

It is a predetermined cost, as it is determined in advance what should be the cost of production. When standard cost is used for the purpose of cost control it is known as standard costing. Now the question arises what is standard cost? Standard cost means cost based on the technical estimate of material, labour, overhead for a specific period of time under specific working condition. Continue reading “Meaning of standard costing”

Top MBA colleges in the USA

Master in Business Administration (MBA) is one of the most popular and acclaimed professional courses. It prepares students for the challenging mid-level positions in the corporate world.

There is a common notion that MBA graduates are able to multi-task and are highly skilled to meet the targets and organizational goals, while helping to generate higher revenues. This increases the rate of employment among MBA graduates. Continue reading “Top MBA colleges in the USA”