A study on Monetary Policy and its impact on the price of Stocks of BSE listed Bank

Vol-2 | Issue-3 | March-2015 | Published Online: 10 March 2015    PDF ( 222 KB )
Author(s)
Prof. Viren Chavda 1

1Lecturer, N. C. Bodiwala and M C Desai Commerce College, Ahmedabad, Gujarat (India)

Abstract

An economy includes the economic systems of a nation or other area; the labour, capital, and land and the manufacturing, production, trade, distribution, and consumption of goods and services of that area. A given economy is the
result of a process that involves its technological evolution, history and social organization, as well as its geography, natural resource endowment, and ecology, as main factors. These factors give context, content, and set the conditions and parameters in which an economy functions. Monetary policy is the process by which the Reserve bank or monetary authority of a nation
restricts the money supply by considering a rate of interest. Reserve Bank of India functions as the central bank or monetary authority of our country and is responsible for making implementing and monitoring the monetary policy with the main objective of maintaining stability in price and ensuring required flow of credit to productive sectors. The banking and financial system of a country rests on broad banking operations factors. This research article aims to discover about the monetary policy and its impact on the prices of share of banking companies listed in BSE.

Keywords
Monetary Policy, Reserve Bank, Manufacturing, Distribution
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