Monetary Policy Presentation

1. MONETARY
POLICY
PRESENTED BY :-
RAHUL DEY
BBA(H) 2ND SEMESTER
EMINENT COLLEGE OF MANAGEMENT AND

2. INTRODUCTION
MONETARY POLICY IS THE MACROECONOMICS POLICY LAID
DOWN BY THE CENTRAL BANK.
 MONETARY POLICY MANAGE THE MONEY SUPPLY AND INTEREST
RATE AND IS THE DEMAND SIDE OF ECONOMIC POLICY.
MONETARY CONTROL THE INFLATION ,CONSUMPTION
, GROWTH , LIQUIDITY.

3. WHAT IS MONEY:-
• MONEY IS A CURRENT MEDIUM OF EXCHANGE IN THE FROM OF COINS AND BANKNOTES
COLLECTIVELY.
• MONEY IS COMMONLY ACCEPTED AND GENERALLY USED AS A MEDIUM OF
EXCHANGE FOR ALL TYPE OF TRANSACTIONS.
• THUS ALL KINDS OF CURRENCY NOTES , COINS ,CHEQUING DEPOSITS ,
BANK CARDS ETC

4. FUNTION OF MONEY
PRIMARY
FUNTION
1. MEDIUM OF
EXCHANGE.
2. MEASURE
VALUE.
SECONDARY
FUNTION
1. STANDARD
FOR DEFERRED
PAYMENT.
2. STORE OF
VAIUE.
3. TRANAFIR OF
VAIUE
CONTINGENT
FUNTION
1.DISTRIBUTION
OF INCOME.
2. GIVING A
GENERAL FROM
TO CAPITAL.
3.BASIS OF
CREDIT.
4.MAXIMUM
SATISFACTION.
OTHER FUNTION
1.LIQUIDITY
2.BEARER OF
OPTIONS.
3.GUARANTOR
OF SOLVENCY.

5. BASIC FUNCATION OF MONEY :-
1. A MEDIUM OF EXCHANGE :-
MONEY CAN EASILY BE USED TO BUY GOODS AND SERVICES WITH NO
COMPLICATIONS OF BARTER SYSTEM.
2. STANDARD OF VALUE :-
MONEY IS USED LIKE A RULER TO COMPARE THE VALUE OF THINGS
PEOPLE BUY AND SELL.
3. A UNIT OF ACCOUNT:-
MONEY FACILITATES LOANS. BORROWERS CAN USE MONEY TO OBTAIN GOODS AND
SERVICES WHEN THEY ARE NEEDED MOST.

6. 4. THE BASIS OF CREDIT:
MONEY FACILITATES LOANS. BORROWERS CAN USE MONEY TO OBTAIN GOODS
AND SERVICES WHEN THEY ARE NEEDED MOST.
5. STORE OF VALUE :-
MONEY IS A WAY TO STORE VALUE FROM THE TIME PEOPLE RECEIVE
ITUNTIL ANOTHER TIME TO THEY SPEND IT.
6. A MEASURE OF VALUE::-
MONEY IS THE MEASURING ROD OF EVERYTHING. UNDER THE BARTER SYSTEM, IT IS
VERY DIFFICULT TO MEASURE THE VALUE OF GOODS AND SERVICES.

7. EVOLUTION OF MONEY :-
• EVOLUTION OF MONEY HAS PASSED THROUGH FOLLOWING SIX
STAGES
1. BARTER SYSTEM
2. COMMODITY MONEY
3. METALLIC MONEY
4. PAPER MONEY
5. CREDIT MONEY
6. ELECTRONIC MONEY

8.  BARTER SYSTEM:-
IN BARTER SYSTEM OF EXCHANGE WHERE GOODS AND SERVICES ARE DIRECTLY
EXCHANGED FOR EACH OTHER WITHOUT THE USE OF MONEY IS CALLED BARTER SYSTEM.

9. THANK YOU