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But the demonetisation impact is neutralised when the demonetised currency is replaced with new accepted currency notes. You may note that, even if an individual chooses to park the cash as deposits with banks, it forms a part of the overall money supply. A money multiplier is an approach used to demonstrate the maximum amount of broad money that could be created by commercial banks for a given fixed amount of base money and reserve ratio. M2 and M4 that included post office savings banks deposits. Both liter and cubic meters are used as units to measure capacity or volume. The method used to determine the cubic meters to liters formula is quite a simple form of calculation.

10000+ Medical & Health acronym for Doctors, students & patients from a Medical Abbreviation. Our experts define difficult medical & health language in easy-to-understand explanations of each and every medical acronym. Money Supply can be defined as the money circulating in an economy. “The ClearIAS platform is highly user-friendly. It is quite easy to revise mock exams on the ClearIAS mobile app. The explanations are short, crisp and clear.

In case of the new monetary aggregates, the RBI’s refinance to the NABARD, which was earlier part of RBI’s claims on banks, has been classified as part of RBI credit to commercial sector. The ‘Reserve Bank’s credit to the commercial sector’ represents investments in bonds/shares of financial institutions, loans to them and holdings of internal bills purchased and discounted. ‘Government’s currency liabilities to the public’ comprise rupee coins and small coins. Bank credit is often specifically referred, in monetary economics, as a critical variable affecting consumption and capital formation in a direct manner. As such it is often regarded as a more useful indicator of real sector activity than money supply.

• It is for this reason that money has to have relationship with the activities that economic entities pursue.
• The currency thus represents a ‘public debt’ owed by the government to the holders of the banknotes – the public.
• Coke Oven battery comprises of a large number of ovens, in tandem.
• A money multiplier is an approach used to demonstrate the maximum amount of broad money that could be created by commercial banks for a given fixed amount of base money and reserve ratio.
• This number is multiplied by the amount of reserves to estimate the maximum potential amount of the money supply.

The only thing you are required to determine is their mathematical expression theory. For this, you need to know the values of cubic meters and liters. Converting cubic meters to liters is an easy process, but you first need to understand the basic values of both units in the conversion. As you know, the unit of 1 cubic meter in a liter is 1000, so simply multiply the value in cubic meters by 1000 to get the appropriate converted figures.

Means a Trailer used for carriage of goods and having a Gross vehicle Weight exceeding 3.5 tons but not exceeding 10 tons. Means a Trailer used for carriage of goods and having a Gross vehicle Weight exceeding .75 tons but not exceeding 3.5 tons. Means a Trailer used for carriage of goods and having a Gross vehicle Weight not exceeding .75 tons.

Suppose you wish to convert 1 cubic meter of water into liters, then you simply know it is 1000, but when converting 10 cubic meters into liters you have to multiply 10 by 1000 and the answer you will obtain is 10,000 liters. A Cubic meter is a unit used to measure volume, and this unit is usually used to express the concentrations of chemicals in the volume of air. The volume of a cubic meter is equivalent to 1000 liters or approximately 1 million cubic centimeters. Long steel products obtained normally by hot rolling/forging of billets/ blooms.

How to measure Money Supply: Let’s make it simple!

Coking Coal is converted into Coke in coke ovens which are silica refractory lined ovens/ chambers. Coke Oven battery comprises of a large number of ovens, in tandem. Such batteries are normally attached with By-product plant where in valuable constituents are recovered from the volatile /gaseous content of coal driven out during carbonisation. Accordingly, such coke ovens are known as By-product coke oven battery vis-a-vis Non-recovery type coke ovens, also known as Bee-hive type coke ovens. Ash has highly adverse effect on the productivity of BF and on consumption of coke in the BF. An increase in ash content by 1% over a critical limit results in increase in coke consumption by about 45% and decrease in BF productivity about 3-6%.

Iron ore is typically classified as High grade (+65% Fe), Medium grade (+ % Fe) and Low grade (-62% Fe). In terms of uses, steels are often classified as Structural steels, Construction steel, Deep Drawing Steel, Forging quality, Rail steel and the like. 90% of total steel production, of which, mild steel takes the lion’s share.

The Liters unit is generally used to measure different units throughout the world. Indian Integrated Steel Plants normally use high ash coke produced inhouse, at the cost of productivity, energy consumption etc. The Mini Blast Furnace units however use mainly imported low ash Met coke from China and other sources. Indian ore is generally rich in iron content but the Alumina content is very high which call for https://1investing.in/ special adjustments/techniques for production of iron/steel at the cost of productivity and fuel consumption and hence money. According to International Iron & Steel Institute , for statistical purpose, crude steel also includes liquid steel which goes into production of steel castings. Cold rolled steel sheets/strips coated with an alloy of tin and lead, used in manufacture of Petrol Tanks for automobiles.

Another important consideration in selecting a coal blend is that it should not exert a high coke oven wall pressure and should contract sufficiently to allow the cake/coke to be pushed out from the oven. Based on coking property, coals are broadly classified into two categories namely, Coking Coal and Non-coking Coal. Steam coal used for steam/power generation falls under the broad group of Non-coking coal. It is a term coined by producers like NMDC to designate sized iron ore used directly in Sponge Iron production. The term is internationally used to mean the 1st solid steel product upon solidification of liquid steel. Finished steel flat products are produced from slabs/thin slabs in rolling mills using flat rolls.

Why is the currency in circulation a liability to RBI or government?

Used for manufacture of furniture, auto bodies, roofing, paneling etc. Hot rolled Rail Sections obtained upon hot rolling of Blooms/Billets. Iron making is the process of Reduction of iron ore using the relevant reducing agent . Means a motor vehicle used for the carriage of passengers, comprising not more than eight seats in addition to the driver’s seat. It is similar to currency and coins in possession of the public since people readily accept it as a means of payment. The RBI report after demonetisation had mentioned that 99.3% of all demonetised currency returned to the banking system.

The term is used to designate various types of solid steel products, which are sold to outside customers for further processing or for direct use/consumption. Therefore, it includes ingots and/or semis and/or finished steel products. In the new monetary aggregate NM3, capital account consists of paid-up capital and reserves. ‘Other Items ’ is the residual, balancing the components and sources of the monetary and banking accounts and includes other demand and time liabilities, net inter-bank liabilities, etc., as applicable. Here, the term ‘public’ means those who make actual use of money, that is, households, firms and institutions.

To understand the money supply in the economy RBI uses monetary aggregates like M0, M1, M2, M3 etc. The formula to convert liters to cubic meters is to divide the value of liters by 1000 to get the appropriate answer. The cubic meters unit is derived from the SI unit system to estimate the volume or capacity. In layman’s language, the meaning of cubic meter is’ how a block of space measures 1m x 1m x 1 m in height x width x depth.’ The cubic meter estimates dry measures, as in the wood reference. It provides the required permeability for movement of gases through the bed of iron ore, coke and limestone inside the blast furnace.

Because of having a direct relationship with the inflation rate, its analysis helps in creating adequate policies. The other measures are less likely to replace it, at least in India. Deposits held by the banks on behalf of the other banks do not constitute such demand deposits. Also, this measure is the most stable out of all the others since it includes fewer liquid components. What makes money supply of utmost importance is the fact that it regulates the growth of an economy. An increase in the money supply brings down the interest rates, which leads to a rise in investments by the people.

The Formula for Converting from Cubic Meters to Liters

In India, one of the objectives of monetary policy is clearly stated in official documents as one of ensuring adequate flow of credit to the productive sectors of the economy. However, commercial banks have in recent years been investing in securities such as commercial paper, m3 meaning shares and debentures issues by the commercial sector, which are not reflected in the conventional credit aggregates. The definition of bank credit has been broadened to include such investments. Currency with the public’ is currency in circulation less cash held by banks.

It consists of paper notes and coins in possession of the public. There seems to be a positive relationship between the growth of the M3 money supply and that of inflation. It means that a deficient M3 money supply can lead to a negative impact on the other variable. Subject to the provisions of sub-section , every banknote shall be legal tender at any place in India in payment or on account for the amount expressed therein and shall be guaranteed by the Central Government. If there was a lot of black money in the country, and people choose not to declare and surrender their high-denomination currency notes, then RBI would have gained to the extent that its currency liabilities are lowered.

Glossary of Terms/ Definitions Commonly Used in Iron & Steel Industry

The IMF conducts its financial dealings with a member through the fiscal agency and the depository designated by the member. In addition, each member is required to designate its central bank as a depository for the IMF’s holding of the member’s currency, or if it has no central bank, a monetary agency or a commercial bank acceptable to IMF. Most members have designated their central banks as both the depository as well as the financial agency. Measure of the money supply is the most liquid measure out of all the others because one can easily convert its components into cash. Reserve money is also called central bank money, monetary base, base money, or high-powered money.

Demand deposits are those deposits that one can encash by furnishing cheques. Measure of the money supply and net time deposits with the banks. Time deposits are those deposits that have a specified period of term for maturity and interest rates. Did the government’s move to demonetise Rs 500 and Rs 1,000 currency notes improve the balance sheet of Reserve Bank of India ? To understand this scenario, we must learn the interplay of currency, reserve money and money supply. In the money supply statistics, central bank money is M0 while the commercial bank money is divided up into the M1-M3 components.