Monetary Policy#1: Money multiplier, Fractional Reserve, High Powered v. Narrow v. Broad Money

preview_player
Показать описание
📢Features of Mrunal's Economy Course at Unacademy:
1) 👨‍🏫 Weekly live classes @night even Working Professional can attend
2) 🆎 Updated Powerpoints with latest budgets, economic surveys & current Affairs of Economy
3) 📑 500+ pages Rapid revision handouts, covering both Prelims & Mains, incl. Hindi translation for important terminologies. No need to purchase separate books / NCERTs.
4) 🔠 Weekly Quiz with ranking system
5) 💬 Weekly Doubt Solution to your queries.

- So far in the budget and economic survey series 2017 (BES17): we've covered the evolution of money with special focus on digital payment in the light of de-monetization.
- Now we shall move to monetary policy- tools, review of last one year's policies and its limitations.
- But, first we must learn how can a Central Bank control money supply and liquidity in the system?
- In his book the General theory of employment, interest and money, the famous Economist John Maynard Keynes listed the motives for which people demand and keep money in liquid form 1) transaction motive 2) precautionary motive and 3) speculative motive- also known as the asset demand of money.
- We measure the money supply thus kept as "M1"- which is currency with public plus demand deposits in the banks. Because of the fractional reserve system, Every “R” reserve generates “1/r” new money
- What is money multiplier, why is it said that in a functional economy, money multiplier is always greater than one?
- What is M0: reserve money or high powered money? Why is it called liability of RBI?
- Measures of money supply: M0, M1, M2, M3, M4. what is broad money and what is narrow money? Which one has the highest liquidity?
- How can RBI combat inflation and deflation? What type of policy strategy should it use against these two scenarios? What is easy money policy, cheap money policy, dovish money policy vs. tight money policy, dear money policy, Hawkish money policy.

- Faculty Name: You know who
- Exam-Utility: UPSC IAS IPS Civil service exam, Prelims, CSAT, Mains, Staff selection SSC-CGL, IBPS-PO/MT, IBPS-CWE, SBI PO & Clerk, RBI and other banking exams; LIC, EPFO, FCI & other PSU exams; CDS, CAPF and other defense services exams; GPSC, MPPCS, RPSC & other State PCS services exams with Indian Economy, Budget, Banking, Public Finance in its syllabus- with descriptive questions and answer writing.
Рекомендации по теме
Комментарии
Автор

economics made extremely easy, this guy is one of the most underrated teacher in India today....salute to u, mrunal sir

manangalav
Автор

Really this man should be awarded by govt for his relentless service...🙏🙏

Nayaksomnath
Автор

number of likes should be equal to number of views..for this gentleman's video..

vishug
Автор

I still prefer these videos for doubts,
Thank you from the bottom of the heart sir 🙏🏼

saurabh_
Автор

Fantastic explanation. What a guy! Never expects anything in return. Much appreciated. Thank you!

Anirudh_
Автор

mai hindi medium se hu. mughe achhi tarah se samagh me ata hai ye vedeos . very helpful for hindi medium students. you your teaching style...

aftabraza
Автор

It is because of him i got genuinely interested in economy. Got a bank job. Still watch his videos just for knowledge.

rajnishanand
Автор

thanks, sir I was never able to understand this M's and Now I totally understand the concept which I will never forget in my life .... thanks for teaching me, sir.

vaibhavman
Автор

One of the best teachers of Economy..
May god bless you sir

abhivyas
Автор

thnku sir 4 coming back..our heart was in mouth due to ur absence

Rk-
Автор

Never seen Economic teacher and teaching like this..FANTASTIC SIR!

kaajalb
Автор

Our Saviour for facing UPSC !!
Jai HO

UG
Автор

Aaj ke time me Mrunal sir hi guru kahlane ke layak hai baki to sab Education ke dalal ban kar baite hai. jai gurudev hari om....

daya
Автор

Every half an hour, I take 5 mins off your video to laugh on the jokes. How do you manage to keep a straight face all through the video. In love with u sir.

philominae
Автор

These Videos even today are one of the best

vishwajeetkumar
Автор

FINALLY SIR YOU ARE BACK. Huge relief for all of us.

abhigaurav
Автор

With easy examples it became much more easier..thank you so muchsir

abhivyas
Автор

YOU ARE BEST SIR, , , , THIS WAS THE HARDEST TOPIC FOR ME..AND I AM A MASTER OF IT,

RnjyNishad
Автор

Thanks a lot sir...economics never looked this easy before.

AbhishekKumar-lxxi
Автор

loved this new format . delete old class room videos and plz plz create those video in this new format. Thanks a lot !!

ganesh_speaks