Faced with the universal problem of scarcity, societies of all types must determine (i) what to produce with limited resources and how much of each commodity to produce, (ii) how to produce desirable goods and services (i.e., which methods of production to use) and (iii) for whom to produce (how to distribute society’s output among […]
Production Possibilities Frontier (PPF): With Diagram | Microeconomics
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Top 5 Methods Used for Issuing Notes | India
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The following points highlight the top five methods used for issuing notes. The methods are: 1. Simple Deposit System 2. Fixed Fiduciary System 3. Maximum Fiduciary System 4. Proportional Reserve System 5. Minimum Reserve System. Method # 1. Simple Deposit System: Under this system, the monetary authority is required to keep 100% of the bullion […]
Methods of Credit Control by Central Bank: 4 Methods
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The following points highlight the top four methods of credit control adopted by Central bank. The methods are: 1. Bank Rate or Discount Rate Policy 2. Open Market Operations 3. Variable Reserve Ratio 4. Selective Credit Controls. Method # 1. Bank Rate or Discount Rate Policy: The bank rate or the discount rate is the […]