Ayussh Sanghi is teaching live on Unacademy Plus
APPROACH TO INDIAN ECONOMY 1.4 PRESENTED BY AYUSSH SANGHI
ABOUT ME Passionate about Teaching >Taught at most reputed Civil Services Institutes >CA, Lawyer Follow me on: https://unacademy.in/user/ AyusshSanghi
UNIT IV - MONEY AND BANKING Money Definition and Characteristics of Money Reserve Bank of India measures of Money Supply? (M1, M2, M3, M4) What is the Cost to Print Money? Who prints Money?
UNIT IV - MONEY AND BANKING Banking Evolution of Banking in India. How did Reserve Bank of India get formed? Nationalisation of Banks (1969 and 1980) Effect of Liberalisation on Baking Sector of India
UNIT IV - MONEY AND BANKING RBI What Role is played by RBI? What are the functions performed by RBI? Why is RBI called Banker of Banks?
UNIT IV - MONEY AND BANKING Monetary Policy by RBI Measures taken by RBI to control inflation: Qualitative Measures o Quantitative Measures
UNIT IV - MONEY AND BANKING Qualitative Measures OMoral Suasion Decrease in number of instalments o etc.
UNIT IV - MONEY AND BANKING Quantitative Measures: O Bank Rate, Repo Rate, o Reverse Repo Rate, o Statutory Liquidity Ratio (SLR), Cash reserve Ratio (CRR), o Open Market Operations
UNIT IV - MONEY AND BANKING Impact of these Measures: Why are these measures taken? What impact it has on: oney, O Inflation and Economy
UNIT IV - MONEY AND BANKING Types of Banks List Different types of Banks o Commercial Banks (Public and Private Sector Banks), o Regional Rural Banks (RRB's), o Post Office Savings Banks, Small and Payment Banks o NABARD, O Co-operative Banks, o Non-Banking Financial Company's (NBFC's)
UNIT IV - MONEY AND BANKING Important Financial/Banking Terms o Various steps taken by government to achieve Financial Inclusion. o Example: Introduction of: Business Correspondent model in rural areas o Bharatiya Mahila Banks, O Jan Dhan Yojana, o Mudra Bank
PRELIMS 2014 If the interest rate is decreased in an economy, it will: A. Decrease the consumption expenditure in the economy B. Increase the tax collection of the Government C. Increase the investment expenditure in the economy D. Increase the total savings in the economy Solution (c)
PRELIMS 2013 The Reserve Bank of India regulates the commercial banks in matters of 1. liquidity of assets 2. branch expansion 3. merger of banks 4. 4. winding-up of banks Select the correct answer using the codes given below: (a) 1 and 4 only (b) 2, 3 and 4 only (c) 1, 2 and 3 only (d) 1, 2, 3 and 4 Solution (d)