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  • Module 4 Money Supply

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    Money supply

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    module 4 money supply

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    Money supply

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    10 views9 pages

    Module 4 Money Supply

    Uploaded by

    ketan karmore
    Money supply

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 9
    s Xe LY She dintemendt approaches [ Mearys ab Exptero enh of Money supply > 7 components / constitu: eet Herd tr uchone~ > antrod ly wefers $0 the stock of Money SpP = Money hele by People inspendlable form The Term Supply of Money “rePevs +0 the dodal Mu Modern Measures Includes Money ¢ Near Mo Near Money ikea lo 44a Qovk.. Securifiety bond € other Fnonda Baek = Credit Since, +e Modein ppizoadh Mnduoles Money £:-N2OX Morey, Punefore It is collec. Broad Moner., c a Xs Zo, explain the Factors @nFiuencing “Hu tote! 5 a mMouty Supply. oR i 1 Beplaio fl Various Determining Factors i ok Money Supply - : | —s Tntroduchoo _ | i Money Seeppl eters to tbe vstode. OF Mones ‘ hetd by People Inspandable form + f ——Tqne term supply OF Money ~refevs' to the totcul stock of Domestic Means of Payrnent Owned by the fublic in a Country .Thete ; pefottfon Pncludes Money helel by the Pablic. in Circulahon bul %t cloek nor ‘DPrclud e Money helol by the central ban le, tom mertial banle ¢ Other Monty creaHng Agencies: : z Determinands of Money, Srp ply + High Rwered Money Phe High Powered Money is alyo called Doerve Money + Monetary base, the bigh |} Powexecl Money Rs an Smporhant Determinant oF HAL. Money| “supply in the Modern Eeonomy It is call | Becarse it Pocdudes Cumrent fu Public ” f. Reserves held. by the banks Ik con. be expressed as Re Z C= curren Re Reservvet uth bank: o ; soak Multiplier 3 ee Men i wfion suppl ip aeeied ioe : ie we 2 more Hon oho was lnifodly Supp ay Pie. value of Monexy to Aerthovi ties— oa Me pied determined lod Deunrenty Depost & 2 patio 2) coth Rererve Pato The earnin ay Y tL watio shows te Preference alepeost Public. behween cunsenu —demaud hold. Guarenty = olepasits . The eto aehenels on. banking Byatem 5 Level of Pncome Gntevest ,ehes Petne deposi evetlatn Hoke \ O45 ae gb gig oe Er eR pith OLE of “Toney siecerved buy the — Bankes ye Othey factors f- al Community Choices! i Phe comm munity thoice +o hold _turrenu dekermines the Money Sup ply - TE the Community. PHerets Payment by Cheques Hon Cath, the Money SUPP ly coil! be large | Thervefore, He Coramuni Het Chorce _rregarding Cirrenuy cleposit rato js affected by | banking habits, P¥ice levels tevels OF Income a Sees cee vetun of vitou ty of a pads hu wert] —Z) velocity! of diustation — The Money Supply is DnPtuenced by velo ty pec he velod ty oF More Money supply in “Peoples Pr efex -fo-w Uiquidity dependa On the rate oF Dtevest At the highey Interest Rate People supply more money +o He bane it Sncreases Money supply in the Monee. vie : vatne al) Monekersy Polfey Monetury Polity is set by the cenhral Bank - Tt plagg. am Pmpoxtant vole jn credit creation. Po Bncrease Money Supply , 2B2 » keeqs low, Pntevesbmate iF TS called expansionary Mont+ta Bitcy Po Reduce Money Suppiy,# 2682 Bake iia, ik is called itonivactionary Monetary Poliayi. e) Mscat Policy \ The Fiscal Poly set \by +he Central Government By Making changes ia tan Rate £ Publte Expendifure ib influences Money Supply in the economy Fue Conapr of velou ty of ~ Explain £ E n Of Pncome with Paflucnting fey orci lato nin = meen 26 the Pmpostant function of Mon Medium of Exchange -Bn the P¥ocess of Frangactton One Unit oF cIrrenuy arulap Be Oe Sees The Avera. TNumber OF Hmes ,& untk OF Catt hey Passes from one hand te Anothey duving, a given Hme, Period. It is Cantey Tvelodty of efecslathon oF Money. The velouty of Cirulation of Maney if Ge aivided [nto i 1 Dnuome velod OF Merve Monecy Pneome vetouty of Moneys the dato whieh, Shows “the Average Numbes oF Limes unjt Of Money 1s vecerved at Income 2. THansachon velocity: oF Money Tuansaction) velodi ty VO, Money Pnolicates WAHO between the Value OF +y¥ansachon OF Goodr ~ Seyvices Auving @ given viHme peytod »& €, tHe) tet amount oF Money las cdrculathon | Ver * Determining: Rickret : ear ee po Regularity OF Thieme LP nee eis OF drclaton of money will, ote when Drinme is egulas f

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