Case Studies and Management Resources
 Asia's Most Popular Collection of Management Case Studies

 Case Studies | Case Study in Business, Management, Operations, Strategy

Quick Search


www ICMR


Search

 

Economics For Managers

            

ICMR India ICMR India ICMR India ICMR India RSS Feed


<<Previous Chapter

Chapter 18 : Banking and Money Supply

Indian Financial System

The Banking System

Accepting Deposits
Lending Money
Classification of Loans
Remittance Business

Money Supply

The Components Of Money Supply

The Measures of Monetary Aggregates

The Money Multiplier Approach

The Balance Sheet Approach or the Structural Approach

Creation Of Money And Banking System

Commercial Banks :  Balance Sheet
Credit Creation
Multiple Expansion
Determinants of Money Supply
The Behavior of the Public
The Behavior of Commercial Banks
Influence of the Reserve Bank
Other Factors

Equilibrium In Money Markets

Changes in Equilibrium
Financial Development

Chapter Summary

The chapter started with a brief discussion of the Indian Financial System and the providers of financial services. Later, the services and functions of banks were also discussed. Money supply and various components of money supply were discussed at length. Various measures of monetary aggregates i.e. M1, M2, M3 and M4 were also examined.

The two approaches for determining the money supply, i.e., the multiplier approach and the structural approach, were analyzed. We then examined the process of creation of money and saw how the multiple expansion of money takes place. The chapter also discussed various determinants of money supply. The behavior of the public and commercial banks when there is a change in the money supply was also noted.

The chapter concluded with a discussion of the process for determining the equilibrium in the money markets.

Next Chapter>>

  

Copyright © 2018 ICMR Center for Management Research. All rights reserved.
Terms of Use | Privacy Policy