Money and Banking

:“
” .
.

.
”

(Functions of
Money)

.
, ,
,
, .
,
,
.
 (Primary Functions)
i) (Medium of Exchange):

.
.

, ആ

,
.

ii) (Standard of value):

. ,
100 , 25 ,
20
 (Secondary Functions)
i)
(Standard of deferred payments):

. –

.
(credit transactions) .

ii) (Store value):

.

.
(Liquid
form) .
 :

(Liquidity preference)
.

(Precautionary Motive)

(Transaction Motive)

(Speculative Motive)

:
ആ
.
.

:
.
 : ആ
ആ

.
ആ
ആ
, ,
ആ .
ആ

ആ .
.

ആ .
.

.
MdT = kT
(MdT = Demand for money, transaction motive)
 MdT
,T
.k

. MdT T

k .

(The Speculative Motive)

ആ (Speculative gain)
(Speculative
loss) .
ആ

.
Liquidity Trap
ആ

.
ആ

.ഈ
ആ
,
.ഈ
liquidity trap . .
.
Supply of Money
:

’ .
, ,

.
,

. 1977

.
M1, M2, M3, M4 .
.
M1 = CU + DD

CU =
(
)

DD = .

M2 = M1 +
.

M3 = M1 +
(Net Time Deposits)

M4 = M3 +

(
)

M1 M1 (Narrow) M3
M4 (Broad)
. M3 ആ
.
.
 - (cdr):

(CU)
(DD)
.
i.e., cdr = CUDD

– (rdr):

(R)
(DD)
–
(rdr).

, rdr = RDD

ആ
 .

(CRR)
(SLR).

(High Powered Money): –

(Money base)
.
.ഈ

,
, ,

.
 .
.

H = CU + R

CU = ,

R=

.
1) (Open
market operation):

.
.
2) (Bank rate policy):

ഈ .
.

3)
(Variation in reserve-deposit ratio):
 .
(Cash Reserve Ratio – CRR) ഫ
.

(Statutary Liquidity Ratio – SLR)

4) RBI
(Sterilisation by RBI):
,

( )

RBI
.