0 évaluation0% ont trouvé ce document utile (0 vote)
15 vues1 page
Financial intermediaries play an important role in the economy by channeling funds from savers to borrowers. Priority sector lending requirements influence how banks allocate credit in India by prioritizing certain sectors like agriculture. Money has evolved over time from commodity money to fiat currency and now largely takes digital forms. Commercial banks face dilemmas in balancing priorities like profitability, liquidity, and prudent lending. Central banks use open market operations to influence the money supply and interest rates. Speculative demand for money arises from holding cash in anticipation of future price changes.
Financial intermediaries play an important role in the economy by channeling funds from savers to borrowers. Priority sector lending requirements influence how banks allocate credit in India by prioritizing certain sectors like agriculture. Money has evolved over time from commodity money to fiat currency and now largely takes digital forms. Commercial banks face dilemmas in balancing priorities like profitability, liquidity, and prudent lending. Central banks use open market operations to influence the money supply and interest rates. Speculative demand for money arises from holding cash in anticipation of future price changes.
Financial intermediaries play an important role in the economy by channeling funds from savers to borrowers. Priority sector lending requirements influence how banks allocate credit in India by prioritizing certain sectors like agriculture. Money has evolved over time from commodity money to fiat currency and now largely takes digital forms. Commercial banks face dilemmas in balancing priorities like profitability, liquidity, and prudent lending. Central banks use open market operations to influence the money supply and interest rates. Speculative demand for money arises from holding cash in anticipation of future price changes.
(Reference: Unit II&III) Practice Sheet 2.2 Answer the following: 1. Financial intermediaries play a significant role in the economy. Discss. !. "hat is meant #y priority sector lending$ "hat are its implications on the pattern of in%estment in India$ &. Discss the e%oltion of money to its present day form. '. Discss the dilemma faced #y a commercial #an(. ). "hat are *open mar(et operations$+ ,. -.plain speclati%e demand for money. /////////////////////////////