BANKING AFFAIRS

Detailed explanation-1: -Credit control means extension and contraction of the money supply.

Detailed explanation-2: -Credit Control means the regulation of the creation and contraction of credit in the economy. Credit control is the system used by a business and also by Central Banks to make sure that it gives. Therefore Correct Option is A (contraction of credit only).

Detailed explanation-3: -Credit control is a business strategy that promotes the selling of goods or services by extending credit to customers. Most businesses try to extend credit to customers with a good credit history to ensure payment of the goods or services.

Detailed explanation-4: -Contraction of money supply A contractionary or tight monetary policy reduces liquidity and increases interest rates which has a negative impact on both production and consumption and therefore, economic growth.