IAS (Admin.) IAS Mains GS Paper 3 (Science-Tech, Economy, Environment, & Disaster Management) Indian Economy and Issues-Government Budgeting Study Material (Page 3 of 8)

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Central Bank: Functions of Central Bank

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  • Central bank is the supreme monetary institution which is at the apex of any monetary and banking structure of a country.
  • It is the leader in the money market and controls regulations and supervises the activities of commercial banks.
  • It is the central Monetary Authority which manages the currency and credit policy of the country and functions as a Banker to the government as well…

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Components of Money Supply: Measures of Money Supply

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Money Supply

Components of Money Supply

  • The main components of the supply of money are as follows: Currency Component -Consisting of coins and currency notes issued by the central government and Deposit Component-Consisting of deposits of general public with the commercial banks.
    • Coins: The metallic coins are issued by the country՚s monetary authority. There are two systems of coinage:
    • Free Coinage: Under this system anybody could take a fixed quantity of the metal and get it minted at the mint. The mint is open to the public.
    • Limite…

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