Page 117 - DMGT401Business Environment

Business Environment Harvinder Singh, Lovely Professional University

Notes Unit 5: Monetary Policy

CONTENTS
Objectives
Introduction
5.1 Monetary Policy
5.2 Measures of Money Supply in India (Monetary Aggregates)
5.3 Factors affecting Money Supply in India
5.4 Need to Regulate the Supply of Money

5.4.1 Money Supply and Inflation
5.4.2 Supply of Money, Interest Rate and Investment
5.4.3 Monetary Management
5.5 Reserve Bank of India
5.5.1 Functions of the Reserve Bank of India
5.5.2 RBI and Monetary Policy

5.5.3 RBI and Credit Control
5.6 Summary
5.7 Keywords
5.8 Self Assessment
5.9 Review Questions
5.10 Further Readings

Objectives

After studying this unit, you will be able to:

Discuss monetary aggregates and new monetary aggregates
Define liquidity measures
Discuss factors affecting money supply in India
Explain need to regulate the supply of money

Describe money supply and inflation
Discuss supply of money, interest rate and investment
Describe monetary management
Discuss Reserve Bank of India and Functions of Reserve Bank of India

Explain monetary policy
Explain RBI and credit control

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