1. Apna Sapna Money-Money

2. RBI RBI

3. Monetary Policy and National Income By- By- Rahul Jain

4. Inflation In economics, inflation is an increase in the general level of prices of a given kind. General inflation is referred to as a rise in the general level of prices.

5. Measuring Inflation Use of price index system for measuring inflation. For example, The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services

6. Monetary Policy The term "monetary policy" refers to the actions undertaken by a central bank, such as the RBI, to influence the availability and cost of money and credit to help promote national economic goals.

7. Tools of monetary policy Thus the three ways in which the federal reserve can change the money supply are 1. Change in Bank Rate 2. Open Market operations like buying and purchasing of government securities 3. Change in Cash reserve ratio and SLR Thus the three ways in which the federal reserve can change the money supply are 1. Change in Bank Rate 2. Open Market operations like buying and purchasing of government securities 3. Change in Cash reserve ratio and SLR

8. SLR REQUIREMENTS Banks, NBFCs, and HFIs are required to invest in government securities and other approved debt instruments and securities to comply with the SLR requirements of the RBI. Banks, NBFCs, and HFIs are required to invest in government securities and other approved debt instruments and securities to comply with the SLR requirements of the RBI. The SLR, which is the minimum level of investment in approved securities, computed daily, is a percentage of the outstanding net demand and time liabilities (NDTL) of banks. The SLR, which is the minimum level of investment in approved securities, computed daily, is a percentage of the outstanding net demand and time liabilities (NDTL) of banks. For NBFCs and HFIs, SLR is a percentage of their outstanding public deposits. For NBFCs and HFIs, SLR is a percentage of their outstanding public deposits.

9. Increase in Money Supply 1. Reduction in bank rate, specific interest rate on loans and savings 2. Buying of government securities from bank to increase the money supply 3. Reduction in the variable reserve ratios like statutory liquidity ratio and cash reserve ratio. (Mishra & Puri)

10. Reduction in Money Supply 1. Rise in bank rate, specific interest rate on loans and savings 2. Selling of government securities to bank to curb inflation and to contract the money supply 3. Increase in the variable reserve ratios like statutory liquidity ratio and cash reserve ratio.

11. RBI Establishment RBI Establishment The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934. The Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934.Reserve Bank of India Act, 1934Reserve Bank of India Act, 1934 The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated. The Central Office of the Reserve Bank was initially established in Calcutta but was permanently moved to Mumbai in 1937. The Central Office is where the Governor sits and where policies are formulated. Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India. Though originally privately owned, since nationalization in 1949, the Reserve Bank is fully owned by the Government of India.

12. Preamble Preamble "...to regulate the issue of Bank Notes and keeping of reserves with a view to securing monetary stability in India and generally to operate the currency and credit system of the country to its advantage."

13. Main objectives 1. Monetary authority Formulates, implements and monitors the Monetary Policy, announced twice a year. Formulates, implements and monitors the Monetary Policy, announced twice a year. Monetary Policy Monetary Policy Announces the Credit Policy, announced twice a year - in April it announces new policy initiatives, the October pronouncement is a review of the April policy. Announces the Credit Policy, announced twice a year - in April it announces new policy initiatives, the October pronouncement is a review of the April policy.Credit PolicyCredit Policy Objective: Maintaining price stability and ensuring adequate flow of credit to productive sectors. Objective: Maintaining price stability and ensuring adequate flow of credit to productive sectors. Maintain optimum Liquidity in the economy. Maintain optimum Liquidity in the economy.Liquidity

14. References www.bls.gov www.bls.gov Mishra & Puri, MACRO ECONOMICS. Sultan Chand & Sons Mishra & Puri, MACRO ECONOMICS. Sultan Chand & Sons www.americanchronicle.com/articles/viewArti cle.asp www.americanchronicle.com/articles/viewArti cle.asp www.americanchronicle.com/articles/viewArti cle.asp www.americanchronicle.com/articles/viewArti cle.asp www.economics.about.com www.economics.about.com