Mint Explainer: The deep links between RBI balance sheet and the economy6 min read . Updated: 12 Jul 2022, 06:04 PM IST
- A central bank's balance sheet is not merely a statement of accounts; it is central to the money supply process. At the cost of over-simplification, a simple relation links broad money (M3), i.e. currency with the public, demand and time deposits with banks, and other deposits with the RBI, to reserve money
Central bank balance sheets are in the news. Here is an explainer into the ‘whys’ and ‘whats’ of the Reserve Bank of India's (RBI) balance sheet, and its link with everyday economic lives of people.
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