Cheat sheet · Class 12 · CBSE · Commerce Economics
Macroeconomics: Money and Banking cheat sheet
The whole chapter on one page: key formulas, facts and the points to remember, for quick revision before a test.
CBSE Class 12 · Economics
Cheat sheet
Chapter 3Money and Banking
Money multiplier = 1 / reserve ratio.
1. Money
- Functions: medium of exchange, unit of account, store of value, standard of deferred payment.
- Solves the double coincidence of wants of barter.
2. Money Supply
M1 is narrow money; M3 is broad money (most used).
3. Credit Creation & RBI
| Tool | To fight inflation |
|---|---|
| Repo rate | raise |
| Reverse repo rate | raise |
| CRR / SLR | raise |
| Open market operations | sell securities |
4. Key Points
- RBI: banker to government and banks, lender of last resort.
- High-powered money = currency + bank reserves.
- Demonetisation 2016.
- Commercial banks create credit.
Remember: Functions | M1, M3 | multiplier | RBI tools
Macroeconomics: Money and Banking: questions and notes
More Class 12 · CBSE · Commerce Economics cheat sheets
- Macroeconomics: Introduction
- Macroeconomics: National Income Accounting
- Macroeconomics: Money and Banking
- Macroeconomics: Determination of Income and Employment
- Macroeconomics: Government Budget and the Economy
- Macroeconomics: Open Economy Macroeconomics
- Indian Economic Development: Indian Economy on the Eve of Independence
- Indian Economic Development: Indian Economy 1950–1990
- Indian Economic Development: Liberalisation, Privatisation and Globalisation – An Appraisal
- Indian Economic Development: Human Capital Formation in India
- Indian Economic Development: Rural Development
- Indian Economic Development: Employment – Growth, Informalisation and Other Issues
- Indian Economic Development: Environment and Sustainable Development
- Indian Economic Development: Comparative Development Experiences of India and its Neighbours
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