Current affairs in banking sector 2014-15 (with reference to Reserve Bank of India) Under the guidance of Prof. Mrs.Priyanka Meaning of bank: A bank is a financial intermediary and money creator that creates money by lending money to a borrower‚ thereby creating a corresponding deposit on the bank’s balance sheet. Lending activities can be performed directly by loaning or indirectly through capital markets. Meaning of banking: “Banking " means the business of receiving money on current
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19‚ 2001 the Bank of Japan announced a new policy of “quantitative easing”‚ in an attempt to stimulate the nation’s stagnant economy. Under this policy‚ the BOJ increased its current account target far beyond the level of commercial bank required reserves. This had the expected impact of reducing the already-low overnight call rate effectively to zero. In addition‚ the BOJ committed to maintain the policy until the core consumer price index registered “stably” a zero percent or an increase year on
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The Financial Crisis of 2008 Factors and Prevention Abstract This paper explores the factors‚ which caused the recent financial crisis of 2008. Furthermore this paper will explain how the Federal Reserve’s (Fed) monetary policies and the Federal Government’s fiscal policies are crucial in limiting and perhaps eliminating future catastrophes. The Financial Crisis of 2008 Factors and Prevention The financial crisis of 2008 is widely considered
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sell approved government securities to RBI and get funds in exchange. In other words‚ in a repo transaction‚ RBI repurchases government securities from banks‚ depending on the level of money supply it decides to maintain in the country’s monetary system. - Repo rate is the discount rate at which banks borrow from RBI. Reduction in repo rate will help banks to get money at a cheaper rate‚ while increase in repo rate will make bank borrowings from RBI more expensive. If RBI wants to make it more expensive
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CONTROLS Quantitative controls are used to expand or contract the total quantity (overall size) of credit. These controls are of the following kinds: 1. Bank rate policy 2. Open market operations . 3. Variable reserve ratios 4. Liquidity ratio 5. Credit rationing These are explained as under. i. Bank Rate (or Discount Rate) Policy Bank rate is the rate at which central bank rediscounts bill of exchange or provides credit to commercial banks. For
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What is credit policy ? Credit is temporary capital and the objective of credit is to lend with the purpose of increasing profits and sales. A sound credit policy in business is the blue print to managing by measurement and benchmark The question then arises is ’What is a Credit Policy and how does one write a Credit Policy for their specific nature of business operations? Writing an effective Credit Policy begins with an understanding of the financial exposure that you or your business can
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MONETARY POLICY & CENTRAL BANKING FINMGT2 COURSE SYLLABUS 1st Semester SY 2012 - 2013 UB VISION In pursuit of perfection‚ the University of Baguio is committed to provide balanced quality education by nurturing academic excellence‚ relevant social skills and ethical values in a fun-learning environment. SCHOOL OF BUSINESS ADMINISTRATION AND ACCOUNTANCY MISSION The University of Baguio educates individuals to be empowered professionals in a global community. The School of Business
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economy. These controls include outright legislation‚ tariffs‚ restrictions on volume‚ taxes and market-based forces. These actions allow a country to preserve a fixed rate of exchange for its currency without risking its holdings of foreign currency reserves or hard currency. The problem‚ however‚ is that this control or preservation comes at a substantial cost‚ as many investors will not willing to invest the same levels of funds in that country. Capital controls allow a country‚ whether Malaysia‚ China
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Assignment 1: Privatizing the U.S. Money Supply Would it be possible to privatize the money supply in the United States completely? In doing so‚ what would be the primary obstacle to overcome in implementing such a policy? Macroeconomics 4.1 9 August‚ 2014 Privatizing the U.S. Money Supply From‚ what I’ve learned over the past few days‚ I think it’d be virtually impossible to privatize the money supply in the United Sates but‚ this isn’t necessarily a bad thing. As we already know‚ Keynesian economics
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reports‚ silver possessions in exchange-traded items are about to set historical records on quantitative alleviating measures throughout the globe. In addition to our very own Federal Reserve’s establishment of QE3‚ the European Central Bank‚ the Bank of Japan‚ and China have actually all injected funds into the economic system with plans to buy personal debt and possessions and invest extra on infrastructure. Investors fear that their cash will certainly lose its value amidst intense inflation. For
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