CI4 MEP No.

( nftahim Phaoe
Beyond fuul employmunr, n're in incotnu uads
Q
tinceaned preAue Co0Uvc.

aoks toy higher ditbr

it ditbv
any resaurceL
leado
mony,
to ecessim
the cort -calulah'ono, whych

5Recvsion!
CCraoh bovm ir Suddem 2 sharp
BuinA expamsiono stup, ordirs qre

workes ae Laid t _
(u)Wicduopnad wnemp loymunt Is thewe.

BAN Ananual i'nh''un'om tnat dialo 1n m n

crdit
M a u n funchons are

( accept dporih_(tor_beopla to p thur mo

safe)
Cu Lend many t the nudy in orm_ loam.

CommevualBants_ean rom fhe duienena burcen

bueen_
ineo
whad thypay2rte as inkaes

Cral Bank:-Aper monary 2 ban king iwtituhon

Formo ban iñ_pou'des

THpeo Bank Accaun:

avinq Accounl:-To Save a part dCustomer s

Incom2 tD me0t theIfurure tesdo
aloo earn an in co me M Tnur savingr
(bank interet).
 CLASSTIME| Pg. No.
Date
. wrth draw als 0ve apenod
t i tina. and amount gnuy
a L inuted

Cuvrenrr Accounl
A runnin accoun uwch ca be eperahrd upom au
aMy
o ines a day.
No eotrich'on on t e mumb
day
2amanr d withdvaunl
Bank do e et_pay interest. n SOme Caseo t
take ind denral darges.

-Eizd Fileo Deporit

Made 0v a fixedbemod tinue_from 45 day
onwgrdo.
Higher rate intereat
Rde infereot penod dduporih'om
Bantslund tis mony to the udy a o Loan.

Subsidu qry Bank achvineo

CouUe
Colech on chugus olrawn fram alny banks.
Acceptance 2 collecn'on 4bilo exchange.
Dealing in gorele exchan9e to ict sealumuN o
oveyseas deht
()Stock exchange rutee 2 execuwOY buoine

( Bank Lock fauunea

Making standing ovdevpoymen
local bank
bak in kuping
( 1 Suppying change 2 asish'ng
the mote îesuL in_good cmdu n'o,
Selling pucahjm fovmo Reeral nat'onal Xamop
Collechien b r u m behalt any gor9.
 1MEP No

Commeidl Bank Cenrval Bank

Objech've it to eavn broft objechive is to smulake
econamic arowth.

( T h ere can be several Thee Is mly an

Commwual ban ka. cenTalL bank in a ounivy

here can be brivate L IE is an auron om6us

nanonalzed commerciali'ed mtu on,

banks
Perpm qeneral banking Perormo _general bankinq 2
| aqeny seYvictooY gen. aqag n seTvicuo fo the
govt.

Thy dea with pubuC hy dal with comm. banb

d'retu aThor tinanual imhitunmo
govt.
PNB, sBT,rCICT in Indta RBI in Inoa

MONETARY PO LICV

Refors to mLasukes taan b to contyol qulae

monay2 credit upps in fha econmy.

Rare
Rare interest is a vey mportan fachy hue.

To conTvol volunm
dmmy in eruwlah'on,:
Bank Loan inrest rate
inceased.
| This redute demand bank loa.
Loan.
3UUnmaely, thi's edu tes volunne mony in
circulanm
 CLASSTIME Pg. No.
Date
H there age Scale unemptoymenr in he

Cconsnmy
4) Bank doan jntrest a t o are d ecreased
ThurTh'r createo demard fr ban loam. 2 advan ces
This ulhimawly eradu'catrs unuptay manr upto
Cotain exen

INTERNATNONAL TRADE:

Takes plae due to _oferene in eftie'eny, olue to

oul to
tUowinq eaoom
Cumanc 2 geoqvapcal candihm
Thy du'tt widily acyoss regtana wu'ch roult int
difnene in ehiiny în broduchin gmdo L_
Servicw

Human Cap abiuio

di'fferent in duf counTyeo
Some po sses qreat dextoity 2 oraanizational s u ,
s a r bisicall STurdyLothers intledhually alorh

Di#renu in Accumulahrd capitl

Developed coues dve richw in capital endowmnt
compavcod tD developinog Cunthes.

Intl. Trade ir di Htnenr_from nai onal/in teYcgimal

trade
Degree d u cutry in moremanr mor

Natiomal bou'u'eo u ke taxahom, labaur stunda rdo etz

ditor amou counTMeo.
l'nt. marbea
Aecens to n amal markeg la enoie han
 CLASSTIMEPgNo
Date

Gain fvom Jntnahimal Trade.

> lt enables a caumy t o expovt to
commodteo to

o l h cOuntmes an thus, seurea buTr

marler for tham

Commoou'heo Tm Cannot
Countvieo are able to import
Yodu c a al Ov w hose Yocluch'm cost S

hqh.

Internarima 8pedalizahim uado to best utUsah'm

eso urcA amanq caunieo d T h e world.

t abo hulps to equaviseprcco buwun all

Countneo

nIn abrene trads,_ru wi L e law in

broducing caunry2 w'qh urhere ismat proclucaol

Throug h trads increaoe inroduu'ng aunny

unere
dicreaoe n it isnot prodluud,_

Trmo Trade
Tetws to the pntoa whhch CL tvada ie mada

Thy deptnd om the cemand an Suppy pres

Cuoucriely Colled eiprocal demand )
elasnaty a counry demand tor impo vts
toren demand Y CAuany'_epovts.
Suppy eport
P import
 CLASSTIME Pg. No.
Date
Free Trade Protechom

Under e trads, entry eut o an preign firm

he domeothc maYker.
i ree in

importcd qgoodo afec the domiothc

Pesence cheap
produeto gdverr ely

To
To_pYokc the domeohe sro duces from intornaional
ade Comp ehih'on caunmes impore eomdh'ono.

Taritts /_Cutom Duneo

mort uwiduly uwed muhod
3 type:
) Un-u'neaw i nqle calumn
preferenhal taY system
ezeluoire trads priviuqeoto ah ono with_Jpol'hcal
relahow, racal o reqional nmg ohah'me et.

()
Specihie duty L A Valo remn duty
t a r i is imposed 2 calculated an baois hygical
unt specfie dury.
dun ie impored baoed m valuL _ qodo Avaloren
uy.
(u) Custum2 Countwvaiing duuly
turit impored to vadse prieo imported qoeclo hdp
2

the domeohc þr oducu Cutom

tavH in add't n tv onginal cuotom duury to Cwoure
dagru d pYotechm oriqinaly intendad caunrervailin9
 CLASSTIMEPg No.
Da
ePuanthitahve Resticho
amount
conteu'n god
umitah on pm phy sical
to mpucale.
uansing guola a uwed

Exchange Reotnchono
acc. t impo rtanu. haiqn
dassihcaHon goodo
prionty imporf
and
on 2 tradi
Leado to d'storh'on in brocluehi
travine s .
aY bi
adminittvaie comupion

Othr Meahodo

( Munba Exhange Ratto (toY di feent tyh b gnd

Proulahomt(rerenr import
om bais hualh
) Sanutay
2weltae)
import)
(w Import Surcharge: speaal tao m dunablo
Cv Lineed Purchaoe Requlahono (equ' a fed_broborhionale
purchae domushc avhclk
oY ermy import)

PAYqumens In FavouY Aqainat Protechm

Requwrro f young Lmewy startcd induatyieo to

hl them votabu'th

Covou muN cuftr due to daat dned acceso tu

ak
foreign qoedo ar a cheap

tverulr in dccreaoe cxbort

Counies witn ichur strata bcop, avojcko mpo rt
Ocheap qooco trem boovey cOunriea
 CLASSTIMEPg. No.
Date
F equaluzes th cort dprocluch'on 1 hame 2
toreign cauntmes.

TCT ( Infp. 2 Comm.

Tech.) ha mada it bocsibu
to sht bavt the produerim_pro ws , whch can
be diqitaly transfored toplace hve i Can
be peformed i n a COt-efe etre mannN.

BalancA OF P ay mint

Systemahc ecord a l econom'c tramach'mo buwen

buwen
reoiden
reoicdene2_foretgn caunies during a glen
g/ren 'me
beviod uouay 1 year)

Itin dudis invisible tradu a shippingbaneng insuranca

tourist 2 t v aHe along with visi bla Itemo whi'ch can

be Ounred at ave

Advantuge
tvansach onal stahu
provides infp._ngardu'nq int
6 f h c0untyy qovE.

Helps qovtt.
Halps in makinq dedsiomo req arding moutarY
calpouc

SYuturt

Coost two Sech om

2 Cuyret aCC.

acc
9 Capital
 CI ASS TIME Pg No.
Dt
CuYren AccouNt Caprtal A coun
Dealo with payment 0 Dealo wrth dubh 2
CuYTeny Þrocluted gooolo L clasmo
Serviauo.

Incudts intrest eaYned ov Indtudu_paymus

pasdn claiwo2 aloo m daimo mly.
4ift and dmahoo.

Direcry afeu nahional No direch etet om wrel b

inem 2 u l inome incma. Afeca volume
in
ceunmy. adek hald by a coun
Palanu Paymur dipendo uPm Yrent acc. an

OwiL be balanced i epoytimport

(2 adverse fepoYt < impot
1s favourable export 7 mport_
Country BOPBoP dehicita throug h
O Drawin ampaot accumulattd odlanu, kypt
kypt a0
oerre n a
preiqn CAuatry.Ex India holdo in
Englana.
Drauwing from the IM (ntL Monetary Fund)
Loao Grants fronm 0ther Cauntn'eo.
 CLASSTIME Pg. No.
Date
tha sae a g0od abroad a
Dumpinq:
than Thr damuh selling nce undn
price
Same crcumctanus 2 aut The samL h'mn

2 type
Innan'onal Dumping
occaoimal_foreiqn Salis btow home þrice ov eren

below coot bYL with S m specifie dojechHres

( ) Recesgi'on(tmporary Jew_ pfes)

(w) tD eotu bush a footh old
(u) to drive ou an eu'shing foriqn campehri n ar
sorce t to ] n a catd.
ivto dispose toccooimal domohe Surplus which
a h t Hoult frm a2 decy'nu in demand
(vtdi'spose 4 remnan at he end Seaom.
vi) to 6btu'n bady nudad foregn exchange.

2Pesictent Dumping
eaM Contnmous alto abroad a t a Lower Jpyce
than uome n c
dumand cureo in
May be due tv oufeenu in
may
o ferent cauntmeo f aprocluer