What is fiscal policy?
Fiscal policy is the government’s use of spending and taxation to influence the economy. Fiscal policy differs from monetary policy. Monetary policy refers to the management of money supply and interest rate and is the demand side economic policy used by the monetary authority of a country, typically the central bank (in India RBI) or…
Read article
Certain changes made in the facilities associated with the BSBDA accounts
With effect from September 1, 2019, Banks are required to frame Board approved policy / operational guidelines in respect of certain changes in Basic Savings Bank Deposit (BSBD) Accounts in the interest of better customer service. RBI on August 2, 2019, asked Banks to offer the following basic minimum facilities in the BSBD Account, free…
Read article
What is the meaning of Public debts?
A government requires money for its spending which includes normal government expenditures, capital expenditures on public works, relief expenditures, and subsidies of various types, transfer payments and social security benefits etc. Imposing tax on public for the above spending is major source of its revenue. Beside Taxation, government collects money through fiscal surplus of previous…
Read article
RAROC approach for risk evaluation
Banks, across the world, use different techniques to evaluate the probable risks through sensitivity analysis, scenario analysis, break-even analysis etc. The most commonly used approach is the Risk Adjusted Return on Capital (RAROC). The banking as well as Non-banking financial institution and also large numbers of businesses are utilizing RAROC metric to calculate Return on…
Read article What is a contractionary Monetary Policy?
The contractionary monetary policy is the opposite of the expansionary monetary policy. It is used to fight inflation which involves decreasing the money supply to increase the cost of borrowing which in turn decreases GDP and dampens inflation. Once the Central Bank of the country (In India RBI) puts too much liquidity into the banking…
How to measure Gross Domestic Product (GDP)?
The most well-known and frequently tracked metric used for measuring the economic growth of a country is the gross domestic product (GDP). The Gross Domestic Product measures the value of goods and services produced by a nation both for domestic sale and exports. However, GDP does not include imports for measurement, as imports are not…
Read article