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Commercial

Imoney
supply
ppublic. andOpen
Reserve
though multiplier cash Institutions
ofFinancial (1997-98). Financial
trom
includes andthee
of
ASgregates
Aggregates
Liquidity highly 1sSuch cash and or by 16
country.
Role
control
Role So
Ths Moncy Money i multiplier.
andSupply
Symbolically. Ans.
commercial Q. L3 L2Ll The RBI TheAggregate soldAns. the .
narket change or 13. = follotwing = = the assets as 12
suppiy
Depending
Similarly of Ratios.Issue of inplies High-powered reserves Ihe
L2+ LI L3 public financial and
Third
commodity Liquidity inThird
Central multiplier H MC + D Explain
Institutions dependentthon e cah the What
Commercial is + and wth
Banks the in =C+ Monetary
the Public Postal th e
of Working liquidity market
equiv Working are
in operations, man Tern
price currency money that
Moreover, banks apart not
the
frequency on gven as
is ratio of why Liquuditv Banking respcct indicates
Bank liabilities
Conoy.Commercial level
M (m) RR dcterminants
the Deposits Moncy Deposits with futuresalents aggregates?
liquidity
Mention
the supply money of base and th e from([DFD refers
without
Banks GrOup Group?
reserve Sclective (). in mH is ER central
money respct to Shiv
in
Central Money given money aggregates svstem
Aggregates like, the
refers the Pst and of the
availability contracts,
of to
of the It can is Borowngs,
toith(excludng nontleKIsitory Das
in central differentiated affocting degree
bank Bankseconomy. also as given supply bank Office nature
to stocks,
requireents, Money Non-Benking the DELHI
credit bankSupply.Occur supply
tonon-banking
of that ther
ansactions,
influcnces as ease
the
are
uses due to
Itmoney bank? have
Saving attr1butes
is, is and that
bonds. which the to
Supply. IS National that
required control Central supply UNIVERSITY
high also mightetificate of andthe of asset's
credit
investors
to been functioning
Depository the Monetarv execution
other
Cedit Bank change powercdcalled
supply
financial
Banksfinancial
Fnancial derivatives an
mechanisms
Demand Bank. of change fornula former The
banking policy Saring price.asset
to Reserves funds can these
reation keep in
of basit
directly are-Monetary
high corporatons The or
includesAggTegats
Deposits corporations of tor SERIES
high Keserves
Excess
ER- money due Certifcates)
institutions. ted easly agKTegates
deposits irstruments Corporathons size of or
security
habitreserves available
powered by dist1x the financial examples
by
powered
to conttols to ther
reacts the institutions sell
controlling
influence Currency
Demand
Required
Reserves change
of and the tion moneythe can
Third such fron instrumens
hnancial
tor
public toand are for transactions
such money monetary-hablih
accepting between cash. of be tor
incTease available
provide
monetarymoney
use
bae in Tern while
as liquid
Deposits held
the
Working other bounk. India
quickly
moncy as Developmens whch
etc. or by (H) ofard supply
Bank
regulating behaviour Deposits th e MonctaFinanial assets as
in
influence credit with base public
of either deposits supply
noncy supply Moncy Money (2021) Groun whik give
hanks lae in.
rate,
to the (H) as of

In Give
the Ans. cent o
(im) () (i) (in
(i)
reason 14.
interest ()
banksDisount
trom urrentmore
theat If public an What
money.there Moneyentral
increase for
and the noney rate, impact
which ts increases bank your
Central rate increase supply
this moncy in
in
interest means inTeases cach
answer.
will the is the interest
has their
bank pocket supply in of
decreaseinterest a
rate people tryative
he the
So iscount cash rate
lead1ng publictends
money following
increase now holdings -Money Unit
the rate
Oney charged cash
relattonshup to rate
suppiv towill
in ncrcase holdings fall. will
demand
more
discount
suppiy inreasehasto have
to
in with
commercial the leads it
rate
Ms on
MD, prices interest money
-M: service
goocds
and
will to
makebanks uncrease
o rate supply
to
mainta As
borroWing
costlyfor tor in the in
th a
the
loans
taken
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