Central Banking & Monetary Policy


Central Banking & Monetary Policy, Central Banking & Monetary Policy (CMP)


Central Banking & Monetary Policy, Central Banking & Monetary Policy (CMP)




Write short notes of Central Banking & Monetary Policy (CMP):

What is floating of taka?
Bangladesh looking to float the taka

The purpose of the float is to make the taka more competitive through devaluation, and is an important condition for International Monetary Fund (IMF) support for Bangladesh.
In a report published last week, Standard Chartered Bank said a floating exchange rate could come at the same time as an IMF paper on reducing poverty in Bangladesh, which is expected in June. The paper will form the basis of multilateral assistance to the country.


What is Convertibility of currency?

Currency convertibility is the ease with which a country's currency can be converted into gold or another currency. ... When a currency is inconvertible, it poses a risk and barrier to trade with foreigners who have no need for the domestic currency.
Convertibility is the quality that allows money or other financial instruments to be converted into other liquid stores of value. Convertibility is an important factor in international trade, where instruments valued in different currencies must be exchanged. Freely convertible currencies have immediate value on the foreign exchange market, and few restrictions on the manner and amount that can be traded for another currency. Free convertibility is a major feature of a hard currency.


What is Capital adequacy of banks

Capital Adequacy Ratio (CAR) is also known as Capital to Risk (Weighted) Assets Ratio (CRAR), is the ratio of a bank's capital to its risk. National regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss and complies with statutory Capital requirements. The capital adequacy ratio (CAR) is a measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted credit exposures. Also known as capital-to-risk weighted assets ratio (CRAR), it is used to protect depositors and promote the stability and efficiency of financial systems around the world. It is a measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted credit exposures. This ratio is used to protect depositors and promote stability and efficiency of financial systems around the world. Two types of capital are measured: tier one capital, which can absorb losses without a bank being required to cease trading, and tier two capital, which can absorb losses in the event of a winding-up and so provides a lesser degree of protection to depositors.


What is Terms of trade
Terms of trade measures a country's trading efficiency. Terms of trade (TOT) refers to the relative price of imports in terms of exports and is defined as the ratio of export prices to import prices. It can be interpreted as the amount of import goods an economy can purchase per unit of export goods. When the terms of trade rise above 100 they are said to be improving and when they fall below 100 they are said to be worsening. It can also have a beneficial effect on domestic cost-push inflation as an improvement indicates falling import prices relative to export prices.










List of subjects for Diplomaed Associate of the Institute of Bankers, Bangladesh (DAIBB) Exam:


1. Management of Financial Institutions (MFI)

2. Lending Operation & Risk Management (LRM)

3. International Trade & Foreign Exchange (FE)

4. Information Technology in Financial Services (IT)

5. Management Accounting (MA)

6. Central Banking & Monetary Policy (CMP)
or
Agriculture & Microfinance (AM)
or
SME & Consumer Banking (SME)
or
Islamic Banking (Is. B)
or
Investment Banking & Lease Financing (ILF)
or
Treasury Management (TM)



List of subjects for Junior Associate of the Institute of Bankers, Bangladesh (JAIBB) Exam:
1. Principles of Economics & Bangladesh Economy (PBE).
2. Business Communication (BC).
3. Laws and Practice of Banking (LPB).
4. Organization & Management (OM).
5. Accounting for Financial Services (AFS).
6. Marketing of Financial Services (MFS).






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