Scribd
Upload
26 views

Prac Sheet 2B

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.

Uploaded by

adsfdgfhgjhk
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
26 views

Prac Sheet 2B

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.

Uploaded by

adsfdgfhgjhk
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
You are on page 1/ 1

Macro Economic Management

PGDM (2012-14) Trimester II


(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.
/////////////////////////////

You might also like