Podcast
Questions and Answers
Which of the following is classified as an endogenous determinant of money supply?
Which of the following is classified as an endogenous determinant of money supply?
What distinguishes exogenous determinants from endogenous determinants of money supply?
What distinguishes exogenous determinants from endogenous determinants of money supply?
Which of the following factors does NOT influence the money supply according to the document?
Which of the following factors does NOT influence the money supply according to the document?
What type of determinants are represented by factors like RBI regulations?
What type of determinants are represented by factors like RBI regulations?
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Why are equations and formulas included in the discussion of money supply?
Why are equations and formulas included in the discussion of money supply?
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Study Notes
Determinants of Money Supply
- Money supply is determined by endogenous and exogenous factors
- Endogenous determinants are internal factors, impacting money supply within the system
- Exogenous determinants are external factors, influencing money supply from outside the system
Endogenous Determinants
- These factors are influenced by decisions and actions within the economic system
- Example: These factors include
- Demand for money
- Supply of credit
- Reserve requirements
- Interest rates
- People's behaviour
Exogenous Determinants
- These factors are determined by external forces outside the economic system
- Example factors include
- Government policies (monetary and fiscal)
- Central bank actions (reserve requirements, interest rates)
- External shocks (crises, political instability)
- International capital flows
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Description
Test your knowledge on the factors that determine money supply in the economy. Understand the difference between endogenous and exogenous determinants and their impact on monetary policy. This quiz covers key concepts including demand for money, government policies, and external economic forces.
