What are the meaning of variance and the types of variance analysis?

The term variance refers to the study of the deviation between the actual costs and standard costs due to various causes and reasons as well. The variance analysis is the process of calculating the difference between the actual and standard costs. The variances analyzing process interprets the difference. With the help of variances and analysis, businesses can fix each variance as well their causes. .this will help not only in finding the difference preplanned cost and actual cost but also in taking a corrective decision as well. 

The standard costing systems will primarily help to calculate variances. Variance analysis is an important tool for the management of business because management can take steps timely for the solving numerous found variances for the achievement of the desired goals of the business. There are several types of variances such as the purchase price variances, labor rate variances, variable overhead variances, fixed overhead variances, labor efficiency variances, and many more. Here in this guide, there will be discussion on all the essential variances which are required for the effective operation of business activities. 

Types of the variances

There are several types of variances before they measure any variances. Generally, the variances are classified on the following basis. 

  1. Based on the element of cost 
  2. Based on controllability 
  3. Based on impact 
  4. Based on nature 

These four are the major variances that will help to calculate many deviations in the actual and standard cost. There will be discussion further all the mentioned variances which are subordinately cost variances conclude in the different variances. 

Based on the element of cost 

The variances based on element of cost refers to different types of cost variances in the business. Mainly these are sub categraonizations are into three types of variances. 

  1. Material cost variances: it will assist the business to calculate the deviation between the standard cost of material and the actual cost of material for the desired output. In this calculation of process, the manager can consider purchase material on a day-to-day, weekly basis, monthly basis, compare it with the actual and find the difference. After finding the divergence business operators take appropriate decisions for matching the forecast of material cost.
  2. Labor cost variances: it is used for analyzing the difference between the actual direct wages paid and the direct labor cost allowed for the output to be achieved. 
  3. Overhead variances: overhead variances are the difference between the standard cost of variances allowed for planned output and actual output that will be in terms of production per unit or labor hours. 

Based on controllability 

The controllability variances are categorized into two parts. 

  1. Controllable variances: the controllable variances have concluded the combination of the fixed variances and variable variances. Fixed variances are fixed no matter how much output the business wants. Variable variances can depend on the output.  Businesses can find the standard cost and actual cost according to the unit of production. 
  2. Uncontrollable variances: external factors are responsible for the uncontrollable variances. The business operator has no power or is unable to control the external factors. 

Based on impact 

The impact variances are classified into two types. 

    1. Favorable variances: whenever the actual costs are lower than the forecast costs for certain production units that are pre deter minted level of activity. The business management is determining for getting actual output at lower cost than the standard costs. It shows the effective operation of the business.
    2. Unfavorable variances: the unfavorable variances refer to actual costs that are higher than the standard cost of pre-determined production. It shows the poor management and inefficiency of the business operation. Management needs to take strict decisions and deeper analysis of the causes of variances. 

Based on nature

Nature variances are classified mainly into two parts. 

  1. Basic variances: basic variances are those variances that are considering monetary rates in account such as prices of raw materials along with onsidering non-monetary factors units in quantities and time of production. Monetary variances include labor price variance, material price variance, and expenditure variance. Non-monetary variance concludes material quantity, labor efficiency variance, volume variances, and many more. 
  2. Sub variances: the baisc variances are further classified in the sub variances example labor efficiency variances are subdivided into two parts labor mix variances and labor yield variances. Similar illustration, variable overhead variances is sub-divided into the variable efficiency and variable overhead expenditure variances. 

Bottom

Variance analyses typically involve all the activities that show the different causes of variances in income and expenses for the certain period. In this guide, we discussed all the type variances that are majorly used by the business. Variances help to fix the responsibilities so that managers can ascertain the person responsibility for the poor results. I hope this piece of information is help full for understanding the variances in business.      

 

 

 

 

 

Teaching and Learning

 Teaching is a kind of communication idea which is meant for make others learning some new concepts. While on the other hand, learning is the act of gaining new knowledge and information. Both the teaching and learning process are complementary to each other and are primary for forming the base of mental growth of the individual. The learning as well as the teaching practices both is crucial for the mental growth of the individual and for actualizing the behavioural changes. Both the learning and teaching combindly form the base of the education system where the students or the learner gain new knowledge and the tutor spread the new information and knowledge.

Teaching Practices

Teaching is the practice of offering knowledge to the learners. It is derived from the English word which refers to showing or pointing out. While thinking about the teaching, the first thing comes in the mind is the classroom where the teacher is teaching the students. Well, this is right up to much extent, but teaching is not limited to the classrooms, lesson, and the formal course. It is much wider.

Basically, teaching includes all the practices where the learners get the option to learn something new. It can be seen outside the formal classroom where the farmer or any other professional get the information and learns for using the new technology, etc. Teaching can be defined as the communication process where the teachers share the skills, new information, and knowledge to the learner allowing the pupils or the students to gain more knowledge and skills.

Teaching can be divided in two forms that include:

    • Formal Teaching
    • Informal Teaching

Formal Teaching

Formal teaching is defined as the process of teaching within the formal class rooms. The formal teaching involves the teacher, class room, and students where the teacher teaches the new lessons within the particular course to the students. It is formal teaching practice which is majorly limited to the classrooms only. Many times, teaches takes their students out of the classroom for more adventure learning and for exploring the world. This also comes under the formal teaching as the concepts taught ate within the particular course.

The formal teaching is basically the class room based teaching practice and it involves the teaching facilitated by the licensed professional only. This teaching process involves the teaching of the pre determined course curriculum for the mental growth as well as development of the students.

In the formal teaching practices, there is need for following the particular rules of the education system. All the students as well as the teachers are required to follow the rules, course curriculum, and the particular standards of the education system. The formal teaching is one way teaching where the teacher is the one who shares the information and teaches to the learner.

Informal Teaching

The informal teaching is much wider concepts associated with teaching and learning in comparison to the formal teaching. The information teaching is having no regulations and is not limited to the classrooms and the formal standards. The informal teaching is also having very less regulations and standards. It involves only a teacher and the student where the teacher is the one who gives the information and student is those who are learning. The informal learning is the two ways learning where the teacher sometimes gains information and knowledge from the learners as well.

In the informal teaching, there is no particular classroom and education institute. The informal teaching is generally facilitated anywhere in the field area. Also, in the informal teaching, there is no particular time boundation as well as rules and regulation. The teacher in the informal learning is also doing not need to be professional. Anybody with more knowledge or information on a particular topic can be the teacher who teaches and shares the information with the learner.

Also, in the informal teaching, the teacher is not necessarily always the teacher. Many time, the teacher also become the learner in order for gaining as well as learning new concepts from others.

Learning

Learning is the process of gaining new knowledge and information. The learning word also derived from the old English language which refers to gaining new concepts, skills, or information. The learning process enables the individual in gaining new talent and information associated with the particular topic. Basically, learning can be defined as the process of acquisition of new concepts and learning or it involves modification of the existing knowledge in order for updating it.

The criteria of learning involve behavioural changes, can be positive or negative, and gained by new insights and experiences. The learning causes behavioural changes in the individual. The behavioural changes after the learning generally last for long time and often the complete life. Though the learning is generally for inducing the positive behaviours in the learner, but it can lead to negative changes in the behaviour as well. The negative changes as well as the positive changes in the behaviour of the learner primarily depend on the teacher and the content being taught.       

Types of Learning

Like teaching, learning can also be formal and informal. The formal learning is inside the class room and the informal learning is outside the boundaries of the class room. Other then this classification, learning can be classified as constructive learning, experiential learning, and the cognitive learning.

Constructive Learning

The constructive learning involves application of the constructive approaches where the learner with their prior information as well as knowledge and the new learning synthesizes the new understanding. This kind of learning is mainly seen in school and teaching institutes where the student with their prior knowledge and newly gained information constructs new understandings.

Experiential Learning

   The learning process involves transformation of the experiences into the new understanding and concepts. This is generally applicable in the field learning where the learner does not need the teacher, but learns from the real time incidents and experiences. The experiential learning is highly effective as it lead to better understanding and mental growth.

Cognitive Learning

The cognitive learning involves observing others, taking instructions from the teacher, and mimicking the behaviour of the teacher. It is an effective learning method that involves observation, learning, and practice that lead to forever lasting concept building.      

 

 

Relationship Between Teaching and Learning

 Teaching is the process of making others learn. It is of two types that includes the formal learning and the informal learning. Both the formal as well as the informal teaching are the communication process where the teacher shares the information and knowledge to the learners. But there is much difference in between the formal and the informal teaching methods. The formal teaching is mainly limited to the class rooms. On the other hand, the informal teaching are much beyond the boundaries of the classroom and can be facilitated anywhere.

In the formal teaching, there is need for following many kinds of rules and regulation. Also, the formal education requires following of certain standards as stated by the education system. On the other hand, the information education do not involves any kind of rules regulations, and standards. It is simpler process with teacher, learner, and sharing of the knowledge.

The formal teaching is facilitated by the professional and well qualified teacher only. While on the other hand, the informal teaching do not requires the well qualified teacher with the license. Also, the formal learning is mainly one way learning where the professional and licensed teacher teaches the new concepts and knowledge to the student. But, in the informal education, the teacher many times shares their new concepts and many time gains the concepts from others as well. The teachers are not always teachers in the informal teaching. Many time teacher skilled in one particular topic become learner in order for gaining information and knowledge associated with other topics.          

Formal Teaching

Informal Teaching

Limited to Class room boundaries

Not limited to the class room boundaries

More rules and regulations

No certain rules and regulations

Need to follow the standards

No such standards

One way teaching

Two way teaching

Time boundation, can be facilitated in classroom hours

No time boundation

Facilitated by qualified and licensed professionals

Qualified teacher is not necessary

Teacher is always teacher

Teacher can be learner

 

Functions of Teaching Process

The functions of the teaching process involves diagnosis the gap, teaching for filling the gap, and then the evaluation of the learner. The functions of teaching are as follow:

Identifying the Gap

This is the first step where the teacher should identify what is needed to be teaching to the student. It involves testing of the learner in order for gaining how much they are knowing already and what to be taught.

Teaching

This is the primary function of the teaching practice where the teacher teaches the students in order for gaining and learning them new concepts as well as new skills. 

Evaluation

This is the last but not least step in the teaching practices. Though this step is generally avoided in the informal teaching, but is considered to be most crucial in the formal teaching practices. It involves evaluating the learner that what they have gained after the teaching process.

Relationship Between Teaching Practices and Learning Practices

    • Like teaching, the learning can also be both formal as well as informal. The formal learning involves learning and gaining insights in the classroom. While on the other hand, the informal learning involves gaining experiences and insights outside the classroom.
    • Teaching and learning process are complementary to each other. It is not possible to perform any of the practice without the other one. For the teacher to teach there is always the need for the learner and vice versa.
    • Both the teachings as well as the learning practices are goal oriented. The goals are also complementary to each other in these practices. The teaching goals involve making the student gain a particular knowledge and similarly the learning goals involves learning of particular concepts.
    • Communication is required for both the learning as well as the teaching process.
    • The good learners with faster skills learning are more likely to become the good teacher. The teacher once were always learners and the good learner can be become a good teacher (Kamiya, 2014). 

Difference Between Teaching Practices and Learning Practices

    • Teaching involves giving the information while the learning involves gaining the information.
    • The primary difference between teaching and learning is that the teaching process involves the teacher that shares their knowledge with the learner. On the other hand, the learners in the learning process gain the information and knowledge from the teacher (Singhal, 2017).
    • In terms of authority, the teachers are having comparatively higher authority in comparison to the learners.
    • The teacher always needs learners or the students in order for imparting and sharing their knowledge. While on the other hand, learner do not always needs the teachers as learning can be done with the experiences, and digital tools.
    • Also, learning can be done when two learners communicates and share their skills and information.
    • The teachers in the education system are known to be qualified and licensed professional with higher qualification in comparison to the learner. On the other hands, the learners are those who are having low or no information on a particular topic and thus gaining skills and information from the teacher.
    • Learning is possible up to the last breath. On the other hand, teaching is possible even after the death. Many of the professionals who have written their books are teaching even after their life.    
    • The population of teachers are often less in comparison to the learner. One teacher can share their knowledge and information with multiple of learners. 

 

The technology involved in the education system

 There are several technological instruments, devices, as well as applications that are involved in the current education system and are making education more accessible and efficient. The technology involved in distance learning and modern education includes computers/ smart devices, cloud technology, virtual reality technology, and many more.

The use of computers, smartphones, and other smart devices has eased communication and collaboration among educators and students digitally. Now the students with the help of smart devices can easily connect with their virtual classroom right from their homes. Cloud technology has eased the sharing of notes and other educational documents, and resources with multiple students from different parts of the world. Also, virtual reality is helping in facilitating the class room experience for the student digitally. Now the student with the video conferencing application and the software can easily connect with the classroom and gain knowledge.

There are several applications that have made educational resources available to both students as well as educators. The students and educators can search for any learning concept over the internet and have a better understanding of that topic. 

Also, there are several applications for monitoring the performance of the student along with evaluating them. There are several software and application for tracking the improvement in the student’s performance as well. The tutors are also utilizing the technology-driven application for making the topic more engaging and interesting. The implementation of the sound effect, animation effects, graphics, etc using the technology-driven application helps in making the study material and the resources more interesting and engaging for the students.   

Use of Technology in the present education system

Technology is being used and changing the education system in several aspects. It is playing a major role in constantly improving the education system. The best example of the use of technology in education includes distance learning. Technology is playing a major role in facilitating distance learning. The technologies like virtual reality are helping in facilitating video conferencing. Video conferencing is facilitating face-to-face communication between the educator and the student and thus facilitates the virtual class room experience of the student learning digitally from the home. 

Further, cloud technology is helping the education system in easy sharing of educational resources like study material, video lectures, books, etc over the internet. This is facilitating the students as well as the teachers to access the study notes, lectures, books, etc for a better understanding of the topics. The online application for evaluating the performance of the student is also contributing to making the technology-driven education system more efficient. 

The use of applications for implementing the graphics, 3D representation, sound effects, animation effects, etc are making the study material more engaging and understandable for the students. 

Impacts of technology on the education system

The impact of technology on the education system includes both pros and cons. 

Pros

The pros of the technology's impact on the education system include:

Flexible- The implementation of technology in education has made it more flexible and easy to access. Students can access education anytime and from anywhere. 

Personalized learning experience- The students with the online education system are getting the option of experiencing personalized learning. The students in the technology-driven learning space are having the option to select their preferred tutors from the wide range of tutors. Also, the location is no more barrier in the education system.

A wide range of courses- The students are now getting the option to select the preferred course from the wide range of courses. There are multiple courses options available on the internet and the student is having the option to choose their preferred courses.

Location is no more barrier- The location is no more barrier now. Students with the technology-driven education system will get the option to opt for any of their preferred universities regardless of their location. Now the students are having the option to learn from any university or educational institute digitally right from the home.

Cost and time effective- The new technology-driven education system is way more cost and time effective than the traditional classroom-based education system. With the digital education system, the same teacher can now facilitate the learning of millions of students from different parts of the world. 

Cons

The cons of the technology-driven education system include:

Compromised motivation- Unlike traditional education, the digital technology-driven education system is lacking the proper guidance and motivation for learning. 

More distraction- Since education is now implemented with technology, other technological applications like social media are much more distracting for the students. 

Less practical knowledge- The practical knowledge and field knowledge is less possible with the technology-driven education system.

Need for technology devices and the internet- Many of the students are not having proper smart devices or the internet and thus cannot access the digital education facility.

Conclusion

So, this is a complete guide on technology and its role in the education system. This article studied the role of technology in education, its impact on education, the technologies involved in education, and many more.     

 

 

Role of technology in the education system

 It is hard to deny the fact that education today is majorly facilitated by technology. Technology is having a vivid role in the educational sector. Now the international society for education is also promoting the role of technology in the education sector. The role of technology in education has increased after the pandemic time. Though, before the pandemic, the technology was incorporated into education and its prevalence increased several folds after learning from home during the pandemic crisis time.

There are several important roles of technology in education that includes the promotion of an effective educational system, enabling students to learn better in engaging method, better communication as well as collaboration between the teachers and the students, more resources for the teachers, learning at own pace, and many more.

Promotes an effective educational system

Technology is undoubtedly resulted in the advancement of the education system and promoted the effectiveness of the education system. The introduction of technology like smart boards and other digital resources has impacted the overall promotion and the development of the learning of the students. The technology helps the students in better learning and understanding the learning concepts using the digital resources and helps from the online tutor/ mentor.

The most important role of education in the education system is that it helped in making education accessible. Now students from any part of the world can attend any university or educational organization situated in other parts of the world and gain information and knowledge. The technology helped much allowing the students to learn based on their own time preferences. For example, if the student is having a job in the daytime, they can continue their study in the nighttime or any spare time at their own pace. This is how the technology facilitated the improvement in the effectiveness of the education system.

Better engagement with the technology-driven education system

The use and introduction of technology in the education system have made it much more interesting and engaging for the students. As the students and kids, these days are more interested in operating digital devices and technical devices the implementation of technology in the education system has made it interesting and engaging for the students.             

Better learning with the technology-driven education system

As technology helps in making the education system more engaging, it resulted in better learning for the students as well. The online guidance from the educator and the tutor helps in better understanding the students. Further, the video lectures can help the student for future reference. The video lectures help the students to re-understand the particular topic in the future again. Also, the online notes and the study material in the form of PDF and other documents also facilitate the easy learning of the student.

Improved communication and the collaboration

The technology implementation in the education system has to lead to improved communication and the collaboration of the tutor and the learner. In the online classes, the educator gets the option of focusing on the individual student, monitoring their performance using specific tools, and better communicating and collaborating with the students. There are several tools and applications that help in managing the communication and collaboration of the educator with the students (Kyaw et al., 2019).

Better monitoring of the performance of the students

The evaluation of the academic performance using the application helps in better analyzing the students. The technology application helps in better monitoring the performance and tracking the academic improvement of the students.

Learning at your own pace

Now the students are no more required to keep up the pace of the learning as in the traditional class room. The student can increase or decrease their learning as per their pace with the online video lectures and other resources.

More online resources for the teachers

The teachers with the help of the online education system and technology get the advantage of accessing multiple online resources including books, notes; online lectures from other teachers, etc for better understanding and thus explaining the topics to the students. Further, the online resources also help the teachers in identifying new and engaging strategies for better explaining particular concepts.

Customized learning opportunities

The advantages associated with the implementation of the technology in learning are not limited to efficient and better learning, but it also promotes opportunities for customized learning. The student with the implementation of the technology in education gets the option of customizing their learning preferences and teaches the subjects they are interested in. They can search for their preferred topic and learn online right from the convenience of their home.

Better understanding through graphics

The implementation of the technology has advanced the level of the education system and the learning methods as well. Now the educators using the online technological and IT tools are implementing the graphics in the learning concepts in order for making them more understandable to the students. The incorporation of the graphics in the learning is making it more interesting and better understandable. The implementation of the graphics, sound effects, animation effects, etc using the technology is making the topic more interesting and engaging for the students, especially the kids/ primary standard students.

Save time and money

Technology is no doubt helped in saving much time and money in the education system. The current education system with digitalization is way cheaper as it allows the educational facilities to more students from different parts of the world at comparatively lower prices.

 

What is the role of infrastructure in a nation’s development?

Infrastructure plays a vital in the development of a nation because it is based on activities. The infrastructure includes transport, communication, and human capital. These three are the pillar of the growth of the nation and the activities are depending on them. Western nations are more advanced than Asian nations because they have good infrastructure. These nations have good physical infrastructures such as they have better roads, ports, highways, airports, and other elements of infrastructure. This is the reason for the faster growth in the economy also. The infrastructure facilities to trade, power business, create opportunities for struggling communities and it has the power to protect the nation from the inevitable events in the natural environment. Many businesses are investing in infrastructures such as telecommunication, pipelines, energy projects, water, building, and many more since it is the backbone of the healthy and growing economy. Good infrastructure facilities solve many problems such as diversification of society, domestic migration, unemployment, poverty, lack of education facilities, and many more. So here we will discuss the role of infrastructure in a nation’s development. The role of infrastructure in the nation’s development The infrastructure is mainly classified into two parts; the first is physical infrastructure and the second is other components of infrastructure. We will discuss below how they both are important for the nation's development. Role of physical infrastructure Physical infrastructure plays a crucial role in a nation’s development. Every activity of business and other general activities are depending on physical infrastructure. If any business produces goods and services then they will need good transport facility to deliver their services to in domestic and another national market. this refers to those good roads, ports, and airport facilities that are very important to reach people without any delay then they excellent services of transport that will show how important physical infrastructure is. If any business produces effective and good services but they cannot deliver their services at the required destination then there is no point ineffective production. Importance of road, airport, ports A good road facility is required for obtaining row material and others services. Similarly, the ports facilitate several services like exporting goods to other nations and importing goods, and many more. It is mainly important for maintaining economic activities in coastal areas. Likewise, the airport is the Morden and efficient way of transport because it makes it easy to move within the nation and out of the nation also. All these mentioned forms of transportation are very important for economic services and humans also. Every nation should invest in these physical infrastructures for the development of the nation that will provide a fast-growing nation. Other important components of the infrastructures There are several elements of infrastructure apart from the water and power situation which are also important for the development of the nation. Because we all know power plays a significant role in a nation. Power cuts and blackouts in big and metro cities cannot be afforded because they can be the reason for the tremendous loss of the manufacturing and producing industries. Water is also essential for business activities and also for living as we all know water is life. So Nation needs not only to work on water and power but also on technology, human capital, urban planning, and many more. Here in this guide, we will discuss the most important elements of infrastructure. Possible investment in hardware and software Investment in the hardware includes building highways, airports, and ports because it is the reason for growth. Businesses are spending on hardware then the most of the expenses will spend on materials, wages, production, construction, and many more. These will assure fast growth in the industries. If a nation spends massively on the infrastructure for strengthening the hardware then the economic growth will be tremendous over time. Software refers to people who are appointed as staff for enhancing effective productivity. Human capital Human capital is another crucial element of infrastructure. It is required for effective productivity and achievement of any goals. Skilled and trained employees are essential for the growth of the nation. The nation needs to invest in education and healthcare because it makes a healthy and well-educated workforce that ensures the growth of the nation. Several industries can take advantage of human resources for the growth of the nation. Urban planning This is also a very important element of a nation’s infrastructure. Nations should make a strategy for urban planning in the nation. Urban planning refers to design and regulation regarding space use that also focuses on physical form, economic form, and many more. Urban planning mainly focuses on the effective use of land that is also considered in infrastructure development. Bottom No nation can develop without the infrastructure so every nation needs to spend massive on infrastructure. Infrastructure is the primary object of a nation’s growth. Growth in infrastructure can make drastic changes development of the nation.

What are the main instruments of monetary policy in India?

The reserve bank of India implements the monetary policy for the development of the economy in India. The monetary policy is controlled by the reserve bank of India. They control the supply of money in the market through various tools of monetary policies. The instrument of monetary policy helps RBI to control inflation and deflation in the economy. In the case of deflation, the availability of money is not appropriate and it leads to a reduction in investment. On the other hand, inflation makes the poor poorer and the rich became richer this leads to a rise in the prices of commodities. In India, RBI is the sole authority that controls and implements all the monetary policies such as reserve repo rate, CRR, SLR, open market operation many more. But these instruments divide into two parts that are. Quantitative, General or indirect Qualities, selective or direct Here in this guide, we will discuss both the instrument of monetary policy in the best possible way. Quantitative methods This category includes quantity and volume of money. Quantitative methods include bank rate variations, open market operation, reserve ratios, and many more. These methods control credit money in the economy through commercial banks. These instruments are indirect. Here we will discuss one by one instrument of quantitative methods. The policy of bank rate The bank rate refers to the rate of interest at which the central bank lends money and rediscounts first-class bills of exchange and security held by the commercial banks. When the RBI finds that inflationary pressures will rise in the economy then the interest rates are also raised. Borrowing from the central bank becomes costly for commercial banks so they try to less borrow in that situation. As result, the commercial banks also raise their land rates for business communities. On the other hand, this situation became contrary, when the central banks lend their money in lower rate interest to commercial banks then the commercial bank borrow loans at a cheaper rate. The commercial banks also lend their money at a low rate to businesses then the businesses are taking more loans for development. This will maintain the cash flow in the market and the output is an increase in employment, and income, demand starts rising and the downward movement of prices is checked. Open market operation Open market operation refers to the sales and purchases of short/long term securities in the open market by the central bank. In the case of rising prices then the central bank sells its securities to control it. Commercial banks reduce their securities because they are not in a position to lend money to business communities. In this situation, the money market faces a shortage in money supply in the market. On the other situation when the RBI purchases securities from the commercial bank and other individuals in exchange for money then the commercial banks can invest that money in the business and many more places. Changes in reserve ratios This instrument was first used in USA monetary policy as a monetary device. Every commercial and noon commercial bank is required to maintain a certain percentage of the total deposit as a reserve in the bank’s vault and a certain percentage in the central bank also. These reserves are known as statutory liquidity ratio (SLR), and cash reserve ratio (CRR). Statutory liquidity reserve concludes a certain percentage of reserves that are maintained in gold and foreign reserve. In India, the SLR rate is 25-40 percent by the central bank. The cash reserve ratio (CRR) refers to a certain amount of reserve that is maintained in form of cash that is deposited in the RBI accounts. The CRR rate is between 3 to 15 percent by the regulation of India. These rates change with time and the situation of the market also. These rate changes bring many changes in the commercial bank's position also. Repo rate A Repo rate refers to the rate at which commercial banks borrow money by selling their securities to RBI for maintains liquidity. In another world when commercial banks borrow from the RBI at a certain rate of interest that is called the repo rate. Commercial banks take loans from a commercial banks to maintain cash flow in the market. at the time of inflation, the central bank increase in repo rate which means they want to prevent commercial banks from borrowing from the central banks. The central bank keeps changing the repo rate and reverses the repo rate for adjusting the liquidity in the market. Reverse repo rate The reverse repo rate refers to the interest rate at which the central bank borrows money from the commercial bank and domestic bank. This is one of the important tools of the RBI to control excess money supply in the market. If the reverse repo rate is increased that means the supply of money will fall, and vice versa as well. This happens when the central bank is assuming all the variables remain constant. The commercial banks are attracted by the raised rate of interest and they want to deposit their money to the RBI which will reduce the availability of money in the market. Qualitative methods or selective This method is used for specific purposes for example controlling export over imports, essential and non-essential credits, and many more. They usually take the form of changing margin requirements to control speculation activities within the economy. These methods are used to control particular items raised prices in the market in a short term period.

Meaning and objective of the monetary policy

Monetary policy refers to all the credit control and supply of money measures adopted by the central bank of a nation. It includes all the actions regarding the monetary authorities to change quantity, availability, and cost of money. The central bank makes monetary policies for achieving the economic objectives of the nation. there are several tools are used by the central bank to control Monetary policies such as bank rate policies, open market policies, changes in reserve ratios, selective credit control, and many more. Many researchers define monetary policies conclude as the management of the expansion and control of the volume of money by the dividing for any purpose such as generating employment, price stability, economic growth, and many more. In this article, we will discuss more the objective of the monetary policies. Objective and goals of the monetary policies The object of monetary policies are varying in the different nations and different economic as well. It is the possibility to clash the different objectives with each other, but the selection of the right approach is very important for notions. The selection of monetary policies is depending on the condition and situation of the market of the nation. We will discuss the major objectives of the monetary policies that are listed below. Sustainable business cycle Businesses are very important for the growth of the economy. Monetary policies play a vital role in the business also. The establishment of businesses is depending on the monetary policies of the nation. Businesses are very important to maintain the cash flow in the market because it includes the purchase and sales of goods in exchange for money. The central government controls the prices of goods and services of a business. Generate employment Employment is one of the main goals of monetary policies. It is important for increasing the potential growth of output of the nation. in monetary policy generating employment means the central bank gives funds to the government to spend money on the human capital of the nation that will help for making skilled human capital. If the government spends enough on the education and training programs for people that will ultimately enhance the humane capital. Human capital is an important part of the growth of the economy of the nation so monetary policy is also considered an important component of the object. Price stability Several economists consider price stability is an important part of monetary policy. Fluctuation in the prices brings uncertainty and instability to the economy. Price stability does not refer to every commodity of the price should be fixed. It refers to the prices of domestic products not the effects of short-term movement in the market. It controls the violation of fluctuation in the price through monetary regulation. The policymakers measure the prices of wholesale prices by the index then they make several policies for controlling the price system. Price stability is very important for maintaining the smooth function of the economy because the deflation represents the cumulative rise and fall in prices both think to create disturbance in the economic growth. Inflation is always creating an unequal distribution of resources between the rich and poor. On the other hand, deflation leads to a reduction in income and output and causes unemployment in the economy. Thus price stability promotes business activity and active or stable prosperity also. Economic growth Economy growth is one of the important long-term objectives of monetary policy. The developing nation can control the short-term goals such as price stability, full employment, and many more but the long-term goals require changes in structure for the development of the nation. all the short-term objects are also dependent on the long-term goals for example full employment of monetary policies cannot achieve without the economic growth. The object of economic growth also includes the progress in the economy, changes in education systems, growth in business, growth in living standards, and many more. It covers a wide range of growth in every sector of the economy. Money neutrality Money neutrality is also a very important object of the monetary policy. Money neutrality concludes that the changes in money supply do not affect the output of the services and goods. It is based on the passive factor because it functions only as a medium of transaction services and goods. The reason for money neutrality considers the object of monetary policy because it affects a lot of things like demand and supply, productivity, consumer preferences, and many more. The reason for inflation and deflation is an unequal distribution of money. Money neutrality is a very important component of the smooth running of the economy and business also. Bottom Here we discussed the meaning of the monetary policy and its objectives of monetary policies also. Monetary policy is one the most important pillars of countries economy because it affects every sector of the economy. I mentioned all the important objectives of monetary policies like full employment, economic growth, inflation control, and many more.