Notes and Study material for Exams
Monetary Policy TOOL: There are several direct and indirect instruments that are used for implementing monetary policy. Repo rate: The (fixed) interest rate at which the Reserve Bank provides overnight liquidity to banks against the collateral of government and other approved securities under the Liquidity Adjustment facility (LAF). Reverse Repo Rate: The (fixed) … Read more
, Andhra Pradesh is a state in the southern region of India. It is the seventh-largest state by area and the tenth-largest by Population. The state has a long history of agriculture, and it is still a major contributor to the economy. However, in recent years, the state has seen a significant Growth in the … Read more
The Reserve Bank of India Act, 1935: A Foundation for Monetary Stability and Economic Growth The Reserve Bank of India (RBI) Act, 1935, stands as a cornerstone of India’s financial system, establishing the central bank and outlining its crucial role in regulating the nation’s monetary and financial landscape. This legislation, enacted during the British Raj, … Read more
The Power of the Purse: Understanding Money Supply and Its Impact on the Economy The concept of money supply might seem abstract, but it’s a crucial driver of economic activity. It’s the lifeblood of the financial system, influencing everything from interest rates and inflation to employment and economic growth. Understanding how money supply works is … Read more
The Monetary Policy Framework Agreement: A Foundation for Stability and Growth The global financial landscape is a complex and dynamic environment, constantly evolving in response to economic, political, and technological shifts. To navigate this intricate terrain, central banks around the world have adopted a range of tools and strategies, with the Monetary Policy Framework Agreement … Read more
When a government spends more than it collects in taxes, it borrows from the private sector to finance the budget deficit. The accumulation of past borrowing is the government debt. A tax cut stimulates consumer spending and reduces national saving. The reduction in saving raises the interest rate, which crowds out Investment. As per Solow’s … Read more
IMPACT OF NEW ECONOMIC POLICY India’s post-independence development strategy showed all the signs of stagnation, but the economy started showing the sign of recovery in the early nineties when the government adopted the new economic model known as INFRASTRUCTURE, into a modern developed economy. New Economic Policy 1991 India opened up the economy in the … Read more
The Real Effective Exchange Rate: A Key Indicator of Competitiveness The Real Effective Exchange Rate (REER) is a crucial economic indicator that measures the relative price of a country’s goods and services compared to its trading partners, taking into account inflation and exchange rate fluctuations. It provides a comprehensive view of a country’s competitiveness in … Read more
A Journey Through Time: Exploring the World of Ancient Coins Ancient coins, small pieces of metal bearing the marks of history, offer a unique window into the past. They are not just relics of bygone eras; they are tangible artifacts that speak volumes about the cultures, economies, and beliefs of ancient civilizations. From the earliest … Read more