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

Chapter 8: Money supply and inflation

What money is, how RBI and banks create it, how India measures it, and how inflation is caused, counted and targeted.

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

• 8.1Money: what it does and who makes itp. 101
• 8.2Reserve money and the money multiplierp. 102
• 8.3Measuring money: M1 to M4p. 103
• 8.4Inflation: kinds, causes and costsp. 104
• 8.5Measuring inflation; the targetp. 105
• Exam traps and quick checksp. 106
• Practice: 16 questions in three roundsp. 107
• Answers, with every wrong option explainedp. 109
• Make it stickp. 111
• Chapter 8 on one pagep. 112

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.