5. ECONOMIC ENVIRONMENT
• Recently it is complex. Determined
by govt, capital market, household
sector, global market etc. It consists
of economic conditions, economic
systems, economic policies,
economic growth, interest rates,
currency exchange rates
6. ECONOMIC CONDITIONS
• Determined by national income,
percapita income, economic resources,
distrn of income and assets, economic
development etc. business cycles and
economic growth are also important in
the eco.conditions and in turn
environment
7. ECONOMIC SYSTEM
• CAPITALIST (FREE MARKET ECONOMY)
• SOCIALIST/COMMUNIST(CENTRALLY
PLANNED)
• MIXED ECONOMIC SYSTEM – INDIA’s
8. ECONOMIC POLICIES
• The policies throuth:– Budgets
– Industrial regulations
– Economic Planning
– Business laws
– Industrial policy
– Demand and supply of goods
– Monetary policy
– Fiscal policy, Balance of payments, LPG
10. MONETARY POLICY
• RBI’s steps to regulate & control the cost
and supply of money and credit , Credit
control, bank rate, open market
operation, CRR, SLR, qualitative
techniques of credit control etc.