Money and Banking

Commercial Banks

Meaning, importance, and functions of commercial banks — accepting deposits, advancing loans, and secondary services.

Money Creation by Commercial Banks

Credit creation process, primary vs secondary deposits, money multiplier formula, and numerical examples.

Central Bank — Functions and Role

Introduction to the central bank (RBI), its functions as currency authority, banker to government, banker's bank and supervisor, and custodian of foreign exchange reserves.

Credit Control — Instruments of Monetary Policy

Quantitative and qualitative instruments used by RBI to control money supply and credit.