IE&IFS: Concepts and Practice · Part B: Economic Concepts Related to Banking

Chapter 10: Monetary policy and fiscal policy

How RBI steers interest rates and liquidity, how the Government taxes, spends and borrows, and what both do to a bank.

Open Chapter 10 in the e-book The book and its prices

Buyers of the e-book, or of the print copy, which includes it, read the whole chapter. Everyone can read the free sample, pages 1 to 24 of the e-book.

In this chapter

10.1Monetary policy: aim, target and the MPCp. 129
10.2The instruments and the corridorp. 130
10.3Stance, transmission and the 2026 pathp. 131
10.4Fiscal policy and the FRBMp. 132
10.5The policy mix, and the bankp. 133
Exam traps and quick checksp. 134
Practice: 16 questions in three roundsp. 135
Answers, with every wrong option explainedp. 137
Make it stickp. 139
Chapter 10 on one pagep. 140

Corrections and updates

None for this chapter so far. Every correction to the book, and any rule that changes after its date, is listed on the errata page.