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Chapter 3- Demand and Supply of money
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This lesson discusses about demand for money, supply of money and Central bank.

Arpita Prakash
YouTuber NCERTs series initiator at Unacademy 'Educator of the Month' for Feb'19 CBSE 0.1% Merit Certificate holder in Mathematics

U
Unacademy user
Nm
sir please describe slowly u just going fast and fast ....bounce ho jata h or clear samjj nhi ata aur Jo line ap padhte ho wo line par pehle mark kariye fir read kariye I use to find these line ...
Hello maam there is a small confusion, RBI came into existence in 1935 which is very correct....but its establishment was inspired from which act or rule...is it GOI 1935 or RBI act 1934....?
Tanu sharma
5 months ago
RBI was formed under the RBI act of 1934 and it was established on 1 April 1935 at Kolkata
Tanu sharma
5 months ago
RBI was formed under the RBI act of 1934 and it was established on 1 April 1935 at Kolkata
Rahis Khan
5 months ago
thank you
Arpita Prakash
6 months ago
Check this video and all other previous videos on note making https://youtu.be/0e1BKbKOmeU Thanks
  1. DEMAND FOR MONEY: o Money-for conducting transactions Larger the quantum of transitions to be made, larger the quantity of money demanded o Quantum of transactions depends on income o Rise in income leads to rise in demand for money o Rate of interest also determines how much money people keep in banks Money demanded comes down at higher interest rates SUPPLY OF MONEY: o Modern Economy- Money- Cash and Bank deposits o Different measures of money based on types of bank deposits o System comprises of 2 types of institutions- Central bank of economy and commercial banking system


  2. Central Bank: o Almost there in each country- very imp institution in modern eco o India- 1935- RBI o Important functions: .Issuing currency of country Held by public or by commercial banks Called as High-powered money' or 'Reserve money' or Monetary base' (acts as a basis for credit creation) Controls money supply of country through various methods . Acts as banker to government . Custodian of foreign exchange reserves of economy Acts as bank to banking system