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Explain the Quantitative methods of Credit Control.
Introduction: Monetary policy refers to the policy of managing the volume of money in supply in the country. The volume and direction of the bank credit has an important bearing on the level of economic activity. The excessive credit generally leads to inflation and contraction of credit lead to deflation thus the expansion and contraction…
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Explain the balance sheet of commercial bank.
Introduction: Commercial banks are monetary institutions that accept deposits from the public, offer all kinds of account services, lends various loans, and provide basic financial assets like certificates of deposit and savings accounts Etc. A balance sheet of commercial banks is the main asset of a bank to generate profit. Commercial banks play a crucial…
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Explain the qualitative methods of credit control.
Introduction: The central bank aims at providing financial and economic stability in the country. It supervises controls and regulates the activities of all the commercial banks and other financial institutions of the country. Thus central bank is the monetary institution whose main function is to control regulates and stabilizes the monetary system of the country…
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Explain the objectives of monetary policy of R.B.I.
Introduction: The central bank aims at providing financial and economic stability in the country. It supervises controls and regulates the activities of all the commercial banks and other financial institutions of the country. Thus central bank is the monetary institution whose main function is to control regulates and stabilizes the monetary system of the country…
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Write a note on Liquidity and Profitability.
Meaning of Liquidity: Liquidity refers to a bank’s ability to meet its short-term obligations and to convert assets into cash quickly without significant loss of value. Ensures that the bank can meet its financial obligations as they come due, which is crucial for maintaining customer confidence and operational stability. Prevents bank runs, which occur when…
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Explain the Cash Transaction theory of Money?
cash transaction theory graph.
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What is Inflation? Explain its types.
Meaning of Inflation: Inflation is a global phenomena. It occurs in every type of economy. Inflation is a condition with increasing prices which causes a decrease in the purchasing power of money. Inflation is a price rise which is unseen and uncorrected situation. It occurs in both time war as well as in peace time. The…
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What is money market? Explain the features of organized money market.
Meaning of Money Market: The money market refers to a part of the financial market where short-term lending and borrowing of funds takes place. It deals with financial instruments with high liquidity and short maturities, that is less than one year. The features of money market is to facilitate liquidity and financing facilities for various…
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What is money market? Explain the features of unorganized market.
Meaning of Money Market: The money market refers to a part of the financial market where short-term lending and borrowing of funds takes place. It deals with financial instruments with high liquidity and short maturities, that is less than one year. The member participants in the money market are banks, financial institutions, corporations, governments, and…
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Define money market? Explain its components.
Meaning of Money Market: The money market refers to a part of the financial market where short-term lending and borrowing of funds takes place. It deals with financial instruments with high liquidity and short maturities, that is less than one year. The member participants in the money market are banks, financial institutions, corporations, governments. The…