Money and Banking
In NCERT Introductory Macroeconomics, Chapter 2, this topic introduces money and banking. You revisit the limits of barter, study the functions of money as a medium of exchange, measure of value, and store of wealth, and compare currency with demand deposits. The lesson explains measures of money supply, how commercial banks create credit through loans and deposits, the central bank's tools such as the cash reserve ratio, bank rate, and open market operations, and how changes in money and interest shape spending and prices.
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