Class name Subject Book title Chapter number Content Created at
Class XII Economics Introductory Macroeconomics 2 33 Disposable Income of the households is Rs 1,200 crores. The personal income N taxes paid by them is Rs 600 crores and the value of retained earn...
Class XII Economics Introductory Macroeconomics 2 as an index of welfare of a country. Suggested Readings 1. Bhaduri, A., 1990. Macroeconomics: The Dynamics of Commodity Production, pages 1 – 27, M...
Class XII Economics Introductory Macroeconomics 3 Money and Banking Money is the commonly accepted medium of exchange. In an economy which consists of only one individual there cannot be any exchan...
Class XII Economics Introductory Macroeconomics 3 exchange their surpluses. Money also acts as a convenient unit of account. The value of all goods and services can be expressed in monetary units. ...
Class XII Economics Introductory Macroeconomics 3 looking for people with a demand for rice when you wish to exchange your stock for buying other commodities. This problem can be solved if you sell...
Class XII Economics Introductory Macroeconomics 3 amount of money. Since money is required to conduct transactions, the value of transactions will determine the money people will want to keep: the ...
Class XII Economics Introductory Macroeconomics 3 its function of issuing currency. This currency issued by the central bank can be held by the public or by the commercial banks, and is called the ...
Class XII Economics Introductory Macroeconomics 3 be deposited with the RBI as required reserves (column 3). What g the bank lends in each round gets added to the deposits with the bank in the next...
Class XII Economics Introductory Macroeconomics 3 a medium of exchange. Now, let us suppose that Lala had 100 Kgs of gold, deposited by different people and he had issued receipts corresponding to ...
Class XII Economics Introductory Macroeconomics 3 amount in cash – for purchasing a house.) What does the bank do with the funds that have been deposited with it? Assuming that not everyone who has...
Class XII Economics Introductory Macroeconomics 3 left hand side and liabilities on the right hand side. Accounting n i rules say that both sides of the balance sheet must be equal or total assets ...
Class XII Economics Introductory Macroeconomics 3 Total Rs 100 If we assume that there is no currency in circulation, then the total money supply in the economy will be equal to Rs 100. M 1 Currenc...
Class XII Economics Introductory Macroeconomics 3 acts as a limit to the amount of credit that banks can create. We can understand this by going back to our fictional example of an economy with one...
Class XII Economics Introductory Macroeconomics 3 control money supply can be quantitative or qualitative. Quantitative tools, control the extent of money supply by changing the CRR, or bank rate o...
Class XII Economics Introductory Macroeconomics 3 is without any promise to sell them later. Similarly, when the central bank sells these securities (thus withdrawing money from the system), it is ...
Class XII Economics Introductory Macroeconomics 3 an opportunity cost. If, instead of holding on to a certain cash balance, you put the money in a fixed deposits in some bank you can earn interest ...
Class XII Economics Introductory Macroeconomics 3 and a worker. The firm pays the worker a salary of Rs 100 at the beginning of every month. The worker, in turn, Reprint 2026-27 spends this income ...
Class XII Economics Introductory Macroeconomics 3 transferred from the employer’s pocket to that of the worker and sometime during the month, it is passing from the worker’s hand to the employer’s....
Class XII Economics Introductory Macroeconomics 3 GDP. An increase in nominal GDP implies an increase in the total value of transactions and hence a greater transaction demand for money from equati...
Class XII Economics Introductory Macroeconomics 3 this amount be X. Therefore X (1 + ) = 10 In other words, X = 5 (1+100 ) This amount, Rs X, is called the present value of Rs 10 discounted at the ...
Class XII Economics Introductory Macroeconomics 3 the same bond, will become Reprint 2026-27 10  (10  100) 6 6 2 = 107.33 (approx.) (1  100 ) (1  100 ) It follows that the price of a bond is in...
Class XII Economics Introductory Macroeconomics 3 as rmax – r M S (3.4) r – min 46 where r is the market rate of interest and r and r are the upper and c max min m lower limits of r, both n positiv...
Class XII Economics Introductory Macroeconomics 3 for money is zero. The rate of interest is so high that everyone expects it to fall in future and hence is sure about a future capital gain. Thus e...
Class XII Economics Introductory Macroeconomics 3 used to obtain commodities worth Rs 100 from a shop, the value of the paper itself is negligible – certainly less than Rs 100. Similarly, the value...
Class XII Economics Introductory Macroeconomics 3 Savings Certificates) where, CU is currency (notes plus coins) held by the public and DD is net demand deposits held by commercial banks. The word ...