Money and Banking
Comprehensive CBSE Class 12 Macroeconomics notes on commercial banks, credit creation process, central bank (RBI) functions, and monetary policy instruments. Includes diagrams, money multiplier formula, and numerical examples.
Topics(4)
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.