MONETARY POLICY

Sure, here’s an explanation of sterilisation: Sterilisation: Sterilisation is a process that destroys all living organisms, including bacteria, viruses, fungi, and protozoa, on a surface or object. It is a highly effective way to disinfect and prevent the growth of harmful organisms. The process involves employing physical, chemical, or even radiation techniques to eliminate all […]

The minimum support price (MSP) is a term used in technical analysis to describe the lowest price level at which a security is expected to find support and reverse direction. It is calculated by subtracting the average true range (ATR) from the current price. Formula for Minimum Support Price (MSP): MSP = Current Price – […]

The Human Development Index (HDI) is a composite index that measures human development by tracking life expectancy, education attainment, and per-capita income. It is a widely used metric to assess the well-being and development of countries. Components of the Human Development Index: Life Expectancy Index (LEI): Measures average life expectancy at birth. Education Index (EI): […]

Narrow money is a concept in economics that refers to the money supply that consists primarily of cash and other forms of money that are highly liquid and easily convertible into cash, such as deposits in checking accounts. In other words, narrow money is the money supply that is most closely tied to the velocity […]

The cash reserve ratio (CRR) is a measure of how much money banks must hold in reserve against their deposits. It is a key measure of liquidity and is used to ensure that banks have enough money on hand to meet their depositors’ needs. Formula: Cash Reserve Ratio (CRR) = Cash on Hand/Total Deposits Explanation: […]

A fixed exchange rate is a type of exchange rate system in which the value of one currency is fixed in relation to another currency, or a basket of currencies, by the intervention of the central bank. This means that the exchange rate between the two currencies will not fluctuate freely, but will instead be […]

Quantitative Easing (QE) Quantitative easing (QE) is a set of unconventional monetary policy tools used by central banks to influence the overall economy by manipulating the supply of money and credit. Key Principles: Expansionary: QE aims to increase aggregate demand and economic growth. Asset Purchases: Central banks purchase large quantities of financial assets, such as […]

Nominal GDP (Gross Domestic Product) Nominal GDP is the total market value of all goods and services produced within a country’s borders in a particular year, at current market prices. It is a measure of a country’s total economic activity and is used as an indicator of its economic size and strength. Formula: Nominal GDP […]

A stimulus package is a set of incentives offered to encourage a behavior or to increase the frequency of a behavior. It is a concept that is often used in psychology and behavior analysis. Types of stimulus packages: Positive reinforcement: Offering a reward or incentive for a desired behavior. Negative reinforcement: Removing a punishment or […]

Bank for International Settlements (BIS) The Bank for International Settlements (BIS) is a specialized international organization that facilitates settlement of payments and exchange of foreign exchange between banks worldwide. It is a global system that provides a platform for banks to exchange payments and foreign exchange transactions quickly, securely, and reliably. Key Functions of BIS: […]