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free trade promotes a mutually profitable regional division of labour greatly enhances the potential real national product ofall nations and makes
discuss whether indian consumer goods industry is growing at the cost of future
the production function is q 20 k05 l05 question for the production function q 20 k05 l05 determine four combinations of capital and
direct actiondirect action in more than one from has been employed by the central banks either as an alternative to their discount rate policy or
rationing of creditas an instrument of credit control credit rationing was first employment by the bank of england toward the end of the eighteenth
limitations of open market operationslimitationsfor their success central bank open market operation assume that commercial banks in the country will
open market operations open market operations is another traditional or quantitative weapon at the disposal of central bank to control the volume of
limitation the degree or success with which the central bank can use its bank rate policy to control the total credit in the economy depends upon the
bank rate bank rate is the rate at which the central bank gives loans to the commercial banks against the security of government and other approved
instruments of credit controlthe central bank employs several instruments to control aggregate credit in the country while some instruments like the
objectives of credit control the old objective of controlling credit creation by the commercial banks in the country was dictated by considerations
controller of creditthe principles of credit control by the central bank were discovered and enunciated after the publication of bagehot lombard
bank of central clearance settlement and transfer this function was first developed by the bank of england toward the middle of the nineteenth
lender of last resortthe central bank also acts as the lender of last resort historically this function developed out of the special position of the
custodian of member banks cash reserves as bankers bank the central bank performs several function it keeps the cash reserves of commercial banks in
goverment banker fiscal agent and adviser central banks in all countries acts as the fiscal agent banker and adviser on all important financial
bank of issue the central bank enjoys the monopoly of bank note issue ie no bank other than the central bank is authorised by law to print currency
functions of central bank economists and financial experts lack in unanimity about the functions of a central bank according to kisch and elkin the
neoclassical theorythe neoclassical theory of economic growth began its career in the fifties and since the mid fifties a sizeable literature has
harrod domar theorya basic principle that has been stressed by both harrod and domar in their growth models and which has been incorporated in all
keynes theory keynes views about trade cycle entitled notes on the trade cycle of his classic the general theory of employment interest and money
hawtrey views about trade cyclehawtrey views trade cycle as a purely monetary phenomenon according to him inventory cycles result from fluctuations
hayek explainationunder a fractional reserves system it is possible for the banking system to supply resources to entrepreneurs for investment in
monetary theorywe have seen that schumpeter theory which runs in terms of innovations and technical change is at best an incomplete explanation of
keynes and mitchell descriptionaccording to keynes description a trade cycle is characterised by alternating expansionary and contractionary wavy