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    Essential of Economics Monetary Policy

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    Yashi Mathur
    Margin requirement refers to the difference between the value of a security used as collateral for a loan and the value of the loan. It aims to promote growth stability, price stability, exchange rate stability, and full employment in developing countries. Limitations to achieving these objectives include predominance of non-banking credit, existence of black money, underdeveloped money markets, and higher currency proportions in developing nations.

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    Essential of Economics Monetary Policy

    Uploaded by

    Yashi Mathur
    10 views18 pages
    Margin requirement refers to the difference between the value of a security used as collateral for a loan and the value of the loan. It aims to promote growth stability, price stability, exchange rate stability, and full employment in developing countries. Limitations to achieving these objectives include predominance of non-banking credit, existence of black money, underdeveloped money markets, and higher currency proportions in developing nations.

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    Essential of Economics Monetary policy

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    Margin requirement refers to the difference between the value of a security used as collateral for a loan and the value of the loan. It aims to promote growth stability, price stability, exchange rate stability, and full employment in developing countries. Limitations to achieving these objectives include predominance of non-banking credit, existence of black money, underdeveloped money markets, and higher currency proportions in developing nations.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    10 views18 pages

    Essential of Economics Monetary Policy

    Uploaded by

    Yashi Mathur
    Margin requirement refers to the difference between the value of a security used as collateral for a loan and the value of the loan. It aims to promote growth stability, price stability, exchange rate stability, and full employment in developing countries. Limitations to achieving these objectives include predominance of non-banking credit, existence of black money, underdeveloped money markets, and higher currency proportions in developing nations.

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    © All Rights Reserved
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    of 18

    Margin requirement refers to the difference between

    the current value of the security offered for loan


    (called collateral) and the value of loan granted.
    Limitations
    Objectives
    1. Predominance of non-banking credit
    1. Growth stability
    2. Existence of black money
    2. Price stability
    3. Underdeveloped money market
    3. Exchange rate stability
    4. Higher proportion of currency
    4. Full employment
    (in developing countries)
    (in developing countries)
    1. Underdeveloped capital market
    1. Capital formation
    2. Unorganized sectors
    2. Price stability
    3. Banking habits of people
    3. Maintenance of monetary equilibrium
    4. Lack of corporation by banks
    4. To make BOP favourable

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