UPSC Exam > UPSC Videos > Indian Economy (Prelims) by Shahid Ali > Monetary System - Economics, UPSC IAS Exam Preparation
Monetary System - Economics, UPSC IAS Exam Preparation Video Lecture | Indian Economy (Prelims) by Shahid Ali
|
36 videos|62 docs|78 tests
|
FAQs on Monetary System - Economics, UPSC IAS Exam Preparation Video Lecture - Indian Economy (Prelims) by Shahid Ali
| 1. What is the monetary system? |  |
Ans. The monetary system refers to the set of rules, policies, and procedures that govern the creation, distribution, and control of money within an economy. It includes the institutions, such as central banks, commercial banks, and financial markets, that facilitate the flow of money and the mechanisms through which money is created and regulated.
| 2. How does the monetary system affect the economy? | |
Ans. The monetary system plays a crucial role in influencing the overall economic activity. Changes in the money supply, interest rates, and monetary policies can impact various economic variables such as inflation, employment, economic growth, and exchange rates. For instance, increasing the money supply may stimulate economic growth, but excessive money creation can lead to inflation.
| 3. What are the different types of monetary systems? | |
Ans. There are different types of monetary systems, including:
- Fiat money system: This is the most common system globally, where the currency has value because the government declares it as legal tender.
- Commodity money system: In this system, the currency is directly linked to a physical commodity, such as gold or silver, which holds intrinsic value.
- Representative money system: Here, the currency represents a claim on a commodity, usually precious metals, stored by a central authority.
- Electronic money system: This refers to digital or virtual currencies, such as cryptocurrencies, which are not physical but can be used for transactions.
| 4. How is the monetary system regulated in India? | |
Ans. In India, the monetary system is regulated by the Reserve Bank of India (RBI), which is the central bank of the country. The RBI formulates and implements monetary policies to maintain price stability and control inflation. It regulates the money supply, sets interest rates, conducts open market operations, and supervises commercial banks to ensure the smooth functioning of the monetary system.
| 5. What are the major challenges faced by the monetary system? | |
Ans. Some of the major challenges faced by the monetary system include:
- Inflation control: Maintaining price stability and controlling inflation is a constant challenge for central banks.
- Financial stability: Ensuring the stability of the financial system and preventing banking crises or financial panics.
- Exchange rate management: Managing exchange rates to promote export competitiveness and prevent currency volatility.
- Technological advancements: Adapting to technological advancements, such as digital currencies and fintech, while ensuring financial security and stability.
- Global coordination: Coordinating monetary policies globally to address international economic imbalances and financial crises.
Related Exams
About this Video
|
4.83/5 Rating |
|
Nov 22, 2024 Last updated |
Video Description: Monetary System - Economics, UPSC IAS Exam Preparation for UPSC 2024 is part of Indian Economy (Prelims) by Shahid Ali preparation.
The notes and questions for Monetary System - Economics, UPSC IAS Exam Preparation have been prepared according to the UPSC exam syllabus.
Information about Monetary System - Economics, UPSC IAS Exam Preparation covers all important topics for UPSC 2024 Exam.
Find important definitions, questions, notes, meanings, examples, exercises and tests below for Monetary System - Economics, UPSC IAS Exam Preparation.
Introduction of Monetary System - Economics, UPSC IAS Exam Preparation in English is available as part of our Indian Economy (Prelims) by Shahid Ali for UPSC & Monetary System - Economics, UPSC IAS Exam Preparation in
Hindi for Indian Economy (Prelims) by Shahid Ali course. Download more important topics related with notes, lectures and mock test series for
UPSC Exam by signing up for free.
Description
Video Lecture & Questions for Monetary System - Economics, UPSC IAS Exam Preparation Video Lecture | Indian Economy (Prelims) by Shahid Ali - UPSC full syllabus preparation | Free video for UPSC exam to prepare for Indian Economy (Prelims) by Shahid Ali.
Information about Monetary System - Economics, UPSC IAS Exam Preparation
Here you can find the meaning of Monetary System - Economics, UPSC IAS Exam Preparation defined & explained in the simplest way possible.
Besides explaining types of Monetary System - Economics, UPSC IAS Exam Preparation theory, EduRev gives you an ample number of questions to practice Monetary System - Economics, UPSC IAS Exam Preparation tests,
examples and also practice UPSC tests.
|
36 videos|62 docs|78 tests
|
|
Explore Courses for UPSC exam
|
|
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
Related Searches
UPSC IAS Exam Preparation Video Lecture | Indian Economy (Prelims) by Shahid Ali
,MCQs
,Summary
,study material
,Important questions
,UPSC IAS Exam Preparation Video Lecture | Indian Economy (Prelims) by Shahid Ali
,Monetary System - Economics
,video lectures
,mock tests for examination
,shortcuts and tricks
,Previous Year Questions with Solutions
,practice quizzes
,Monetary System - Economics
,Semester Notes
,past year papers
,UPSC IAS Exam Preparation Video Lecture | Indian Economy (Prelims) by Shahid Ali
,Sample Paper
,Viva Questions
,Exam
,Extra Questions
,ppt
,Objective type Questions
,Free
,Monetary System - Economics
;
Study Monetary System - Economics, UPSC IAS Exam Preparation on the App
Students of UPSC can study Monetary System - Economics, UPSC IAS Exam Preparation alongwith tests & analysis from the EduRev app,
which will help them while preparing for their exam. Apart from the Monetary System - Economics, UPSC IAS Exam Preparation,
students can also utilize the EduRev App for other study materials such as previous year question papers, syllabus, important questions, etc.
The EduRev App will make your learning easier as you can access it from anywhere you want.
The content of Monetary System - Economics, UPSC IAS Exam Preparation is prepared as per the latest UPSC syllabus.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup