Adobe Scan 03-Sept-2024 (2) PDF
Document Details
Uploaded by MesmerizedFrenchHorn
Tags
Related
- Chapter 9 Keynesian Models with Money Supply PDF
- Macroeconomics Chapter 15: The Demand for Money PDF
- Theory of Money (Minor) NEP 2023 Past Paper PDF
- Business In Action: Thriving In The Digital Enterprise PDF
- ECO1102 Macroeconomics - Money Growth and Inflation PDF
- Chapter 12: Intro to Econ. Fluctuations PDF
Summary
This document likely discusses money market concepts. It details components of money supply, and their relation to economic activity and monetary policy in a general way. No specific institution is identified.
Full Transcript
anactivity. Rnomic eidnaration, In...
anactivity. Rnomic eidnaration, In t payment be unimoney, ameans nyin oftheIn O2.1 Conserfutvturedarensfor actioaCCount ns Money monetaryto money Fconomic Source ) iv) (i+ii+iii+iv) n)Components ) )Crores) (InM3 the optimum the used of Reserve Bank (a) NNet 'Other' Time Currency Demand Supply supply supply financial entities real to , previous (i+ü+iii+iv Deposits requiremnents stability value Bank wherein Deposits deposits with on money. of level. on assets, pursue. for It world, is goodsINTRODUCTION economy, performs money and and unit, Credit requires a we December a A however, goods store discussed with the regular the this thus pre-requisite purposes. services or to v)- with withPublic of Item Moneyreason Banks the that variation or of Government 1 services value. lubricant a Reserve Banks 30thcountry.basis the money the can, that and MARKET MONEY 2022 and supply for in Money theories Bank the money therefore, express are that In achieving provides three Sector appropriately purchased facilitates this of stock asrelated must money init primary a (a+b) unit, of be medium this have which monetary monetary we at defined exchange. to or functions is a sold. the shall regulate toany relationship could of terms. demand accurately look time forservices exchange Money 2,04,93,729 8.23 1,51,86,605 March 31 Outstandingon as impactpolicy - Irrespective 64,77,629 14,50,596 30,35,689 22,12,992 into itshould Money medium a for 58,444 2022 in as variousestimate with may accordance purposes along aggregate a unit money. 2 to can the be be of of of December 30 aspectsmaintained activities with also used 2,18,59.358 the exchange, Money account the 1,63,32,494 as be 65,65,472 11,70,253 31,22,019 23,41,912 withstock economic tangible a for form stored 62,932 2022 related set as that can any of a 3 the of of a at 1 The and mainly that and Theexcept The market depositsBroadBanking Source O2.2 empirical the by Indiafinancial 'supply term deposits of M3 is V) iv) ) i) governments government, accept local Government OtherReserve (b) Bank(a) Bank Other broad RBI : Banking Net Banks Banks(b) understanding It government ofthe in CASA the fund money system which: Of facilitates money' institutions, bodies; 'public' redeemable Foreign Credit form demand producers shares/units, post money. Press analysis deposits). (M3) NetSector's 8.24 RATIONALE Reasons and and ofand and in is (savings office Release: Exchange Currency to deposits this defined includes Non-Monetary analysis of of the the and deposits the of at savings M3 Net Commercial th e The banking context, money the the non-departmental International andnotice account, 2022-2023/1540 = Non-Monetary standard banking to M1 LiabilitiesAssets causes money with word (i.e. include debt currency, ECONOMICS BUSINESS of (i.e. of banks. + Sector includes current Time monetary of supply OF systemmeasures the depositssystem 'public' the securities up Liabilities of all to deposits M1 Banking to money RBI. deposits (a MEASURING Monetary government means the economic three account). = Liabilities the +b) is are public-sector In isfrom of Public developments growth. important other inclusive central up Currency Sector of months R.B.l. not which the to with with money, Fund included. words, Reserve government and units two an with the for which of money years and agreed banking interbankundertakings, (households, the public while all two inMONEY holds local Bank banking repurchase 34,82,496 48,54,063 1,25,99,9501,26,16,520 50,27,033 order rea can maturity + system. 13,08,500 discussing and 28,013 16,571 sons: deposits authorities, a be of Demand part India system). tirms, to foreignwithdrawn all state agreements, of M2 provide SUPPLY of and and updeposits and theIndian = 1,40,24,5651,40,44417 definition central non-banking all government to M1 35,26343 47,46428 14,94,789 53,95219 money bythe institutiont two + 29384 19852 a money chegue bankc Savings with banis mone year de pe he: the government. guaranteed (b) (a) The 2 Iending Supply Ihe adopted reditCommercial second any consisting to currency The monetary t he issuedbybank The ItPaper isSued titlMoney by central isliability is a currency e to economy.the in the the O2.3 supply It exclusively othereither on by money'. transactions money of extent 'minimum of a central the policysupplydecision of quantitydirectly stabilitywheesthesrential the banks is banks major gold government. issued the by primary banks of debt has money THEcontrollability of al and the byTherefore, bank is variables ofthe instruments. such by intrinsic responses over The insourceinkeeping and authorities the is of controlling monetary the stock from I to is source all issuing the SOURCES in high-powered with the the reserve by the the understand foreign fiat countries representative sovereign a world monetary of a economy country. only in th e value initiated central the of principle,central money' ofcentral ofeconomy ofbase. the money money system' money In or the the adopt public. exchange a supply Banks is certain are modern represents (or commercial by bank monetary The the in MARKET MONEY bank OF thpolicy e money alsosupply wherein bank andsourceempowered the depends successmonetary ofnature it supply money, a based Money minimum central central economy create reserves. must is (and economies, MONEY money. perspective and determined is is, base backed of title the be in in sovereign) and bank banking the on: on of policy of so money the all all bank and Thideviations the fact, to to monetary is created bankingreservecentral backed In other countries. it s credit by issue commodities is asthe to authority the consistent as to supply by practice, bank liability a supporting currency and forms essentially its influence system SUPPLY money stabilise achieved is it of by representative) currency provides money by the policy from system gold an In an conferred of the extent in is of the empowered however, equal of money.effect, asset th e supply. price this with 8.25 broadly commercial and and, a is that the dependsmainly framework a process of of the reserves_and debt a country level The the standard. foreign value high the of form have total standards credit the most central therefore, The central the and on to a by constitute instrument. growthGDPand country. of to of powered holding intrinsic of money to it, banks created securities.countries currency money is and managing extent large to borrowing issue assets bank legal the for evaluate its supply central the is The currency and value money public. tender. that value changes price by mainly issued the mostcalled and total have the the is or in is beyond issupply practices country, (32.4 country makesTherecryptocurrencies. entities for inThe India safe with form. Reservechange (Digital the at phased the bycontinuum cons tRecent technologies, he Advancementviz. definingMetalliccourse and With common the on crypto Crypto store the It forefront final globe Central functions the is of measurement from virtually cannot as existing isBank th e implementation Rupee introduction innovations of process the in traders currency. of akin to Currency new developments measure currencies value. very launch, with Bank currency. measuring time to broadly explore financial in MEASUREMENT scope to nature of (e)), the digitalization of of 8.26 currency Digital technology to profusion a cite in India, CBDCs severeig a and in to money creation of oftime Hence, defines watershed with of the current Paper The this supply. of RBI's face of strategy.CBDCs simultaneously technology-based landscape in money money Currencies money tsignificant he would and money minimal potential concept has the of unit. and these paper trend has Currency credit of 2018 Reserve of changed supply,ECONOMICS BUSINESs from shall CBDC for economy Just different movement going made supply are appear currency and or some benefits in (CBDCs). money of of money, purpose order be Centta iatal BanJe as no innovations. th e to totalthe or as legislative Bank not accepted its examining step the disruption it Digitalmoney time, over other The follow a OF as functions. time payments possibleeconomy. is thande difficulttypes categorized that of liability but legal in by and th e has reter to measures MONEY India Countries purpse. the step and risks Currency. to of barreduncertainties as takestender is for next experiencedevolution and money countries Different task. (RBI) on a evolution to throughuse RBI solutions Further, BOx money, medium thecases currently has of the it fromof as a a issuing milestone wi l 1, do; Referencemoney SUPPLY them money. has central different issued financial development The end stock of also of range a especially said of various tor have changing h continue the witevolution and of by engaged of from that bank' s payment, currency the been a the this Inare form, a system. CBDC led in payments a of to issuancestages country. a central advent to chapter monetary such credit banks dealing massive notbalance exchangeable exploring in central so ofthfeatures e influence from Vàry legal bank that new different money. or legally Currently, ofworking of to as monetary of system, (For other sheet. itspilots banke form Commodity 'and widevelopment th recognized tender in decisivehy wil own towards pros the maintain of cutting money of the the briei a financa a followe liquidtymeasures dif erent virud and atdigita we CBDC histony ave money -edge tuture torm note a par a 2re and the are a etc. holds the There activities In of Omercial ioney iecessary multiplier currency Supply of O2.5 first MM; M; AMmoney. 'broader M1) Since we alternativaddie tionally astatistics. periodical y shal this any compi measuresledare Ihe nd defined the as July in that are = = = The Working unit, itsoff in current which view, (excluding M3M1 Currency banking deposits Til focus we 1967-68, 1935. oftheby shall that terms approach' two M1 bankS the in circulation DETERMINANTS the money alternate time + +savings + measurespublished respective measure the by the on constituents we economy of affectmoney total Group practice with systemnotes sum of Reserve the be know and the deposits of Reserve of the concentrating whichpeople's supply National depòsits deposits the empiricalmoney on alternative changes. publishedandif the monetary supplytheories and money the isand is (Current RBI. Money currency RBI Bank is coins used Bank concept public. focuses to with RBI, determined bank determined Savings supply supply, of explaindesire is with definitions Supply India. MARKET MONEY in to From demandand India measures on base determined wi th the with RBI.the by Beforereserves. respect (Nw) Money) publish on post and denoted the of to or the Certificates).(Bed banking the the called money high-powered the hold OF (SWo), April has Indian we by determinantsexogenously of office Saving people of only relation determination Post these 'aggregate 1977, been of discuss the This currency MONEY by deposits case supply Money multiplier. eDdogenously depcrert system. the a money approach joint Office savings deposit measures + following M1, RBI single compiling only the between demand M2, has 'narrow held supply and behaviour money. relative of determinants tSUPPLY he Savings banks. M3 monetary holds money of accounts) are been the by and in wil 8.27 the by central deposits and The to money the measure m prepared the change that recommendations given publishing disseminating of deposits, moneysupply changes resources' M4 following monetary Organization ts D= ep public. the total bank. supply. Moey) besides of + below: with of the moneycentralsupply stockbased other and rate the in The From money base the the data discussion,magnitude According (AMR) published supply,bank, of isand economic on ofsecond monetary reserve on1967-68, supply nominal money interest, the 'money of =) four the was it the sum view to C= is e=¬R, the Therefore,reserves powered themoney determines What make The Inmonetary other thencentral powered Formoney. givenMoney high-poweredWhere The Supply Money multiplier. reserves poweredmoneyThe O2.6 reserve reserve money multiplier the instance, change Individuals Banks two bank multiplier M is to to generates money is money. either supply increase earn for simplifying words, base ratiomoney ratio. of if the created any never indicates which th e there in money.money more THE 8.28 money the currency in in the and Deposits, multiplier country m Money is by Banks value 1/R reserves a hold monetary defined the by country assumptions is is defined is Fromsupply, interest.CONCEPT more money. siz e non-bank and what transformed an create of excess held R, of injection is and Multiplier (m)= the as than Reserve Bank for andunlike the high-powered multiple A the said if base. as above m the by one-rupee one money ECONOMICS BUSINESS the corporations reserves. it Money all currency a is M= as to leads Itratio commercial rest follows; of into be of is equation, the m