Story of Money

Money : Medium of exchange,Std of value , store of value

Acceptable

Divisible

portable

Fungible : One unit of money must be interchangeable for other.

Checks : Safety , Convenience , portable

Capacity to sell

Character

Collateral

Capital (OE)

Conditions (Economic factors)

Three tools of monetary policy:

Open market operations

Reserve requirements

Discount rate

M1 = Currency in circulation + Checking accounts

M2 = M1 + Savings account

Lumber and Copper prices give indications of inflation.

ROIC/ROCE :

Cash Adequacy Ratio.

IRR :

Present value and discount rate relation.

WACC

EPS : PAT+RE /No. of outstanding shares

mitigate : make less severe.

HTM : Held to maturity.

Priority lending sectors : Agriculture,Education,MSME,Faramers.Those sectors which wont get loans unless RBI intervenes with schemes.

Local currency swaps :

Iran is allowed to open rupee accounts in two indian banks.Iran can use the money deposited to pay for its imports from india.However imports account 1/3 from india compared to its exports to india.Hence part of remaining

...