After going through this course, the students will understand:
What is the concept of Fractional Reserve Banking?
What is the purpose of maintaining reserves in the context of fractional reserve banking for commercial banks?
Do commercial banks have the authority to physically print currency, or is that exclusive to the central bank's jurisdiction?
Are separate reserve ratios established for cash and funds held at the central bank in the fractional reserve banking system?
Who oversees the production of physical currency in India?
How do commercial banks typically secure physical currency to fulfill their operational requirements, such as stocking ATMs and providing in-person banking services to customers?
What is the rationale behind most countries granting the central bank the exclusive legal authority to issue physical currency?
Can you explain the mechanics of how fractional reserve banking operates?
