Story of Money
Autor: peter • November 6, 2013 • Study Guide • 390 Words (2 Pages) • 1,158 Views
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
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