Mail-1

1. Organic relationship between Macro economic and Monetary policy by means of two graphs
and one equation.
2. What are channels through which monetary policy work- quantity channel(Money supply
and Money demand), Interest rate Channel( price of money)
3. What is supply of money? High Powered Money or base money or reserve money and
money stock or broad money
4. What is reserve money? Components and sources? Interpretation of the resrve money from
the balance sheet of a central bank( Liability component - asset- sources)- Key terms -
Currency in Circulation( C-I-C), Bank Reserves, NDA and NFA
5. What is money stock? components and sources- balance sheet approach liability and asset
in the liability side the key words are currency with public and how that is different from
currency in circulation( reserve money) , NDTL( net demand and time liabilities), and in the
assets side NFA and NDA.
6. Demand For Money - three motives Transaction, precautionary and speculative, how Y
(income and i ( interest rate rate influence them
7. The vertical and downward slope of money supply and money demand
8. Monetary aggregates- Money multiplier- the key word- relationship with reserve deposit
ratio and currency deposit ratio.
9. conduct of monetary policy with ultimate target, intermediate target and operating target in
a monetary target framework
Mail-2

PGDM OFFICE has already Mailed you Reading Material 1 and Reading Material 2 earlier which you have
collected from the Xerox Centre.
1. Central bank and the Reserve Bank of India( Reading Material 1)
2.conduct of Monetary Policy : Tools, goals Strategy and Tactics( Reading Material 2)
1. 3.Attached Please the reading Material 3: Current Monetary Policy Framework in India..