erny the demand of money, the price level and the real income and interest rate. As students we are talking about asset market and we are talking about money market in that we are talking about success of money and demand for money. So what is the demand for money? ता सोदे तोई मोनत्रृटी असर्ट परनी पहंट क्रति करिfashion सआजरीएईничवी सबतछ तो क Canad~~ खेन तोनका धो kni total wealth have न का तोक का जो total portfolio है Service पोर करेक्ट्रस्टिक्स की बात की ती के पोट्फोलियो में कोई भी असेट है, उसके चार बातने है, जिनके पेशिन अजर प्यत्ला किया जाएगा, कि उसे असेट को कितना दिमैंट किया जाएगा. तो अगर वादने उसक लिकुडिती ती अहुट मैचुरेटी थी, तो मनी गिसुरत में ताएगी मैचुरेटी प्र आपलाए नी होती कि वो तो बावनस बगारागा किसुरत में ती, कि बावनस कितने अर से बादाग को कैश में लिका, तो तो RAD काएश में हैं तो इसलिये बाखी तींचीजनों पर वो दिपन्ग करता है के रिटान्ज रिसकोर लिकुटिटी पर दिपन्ग करता है. Okay. So, इन हवाले से, लिकुटिटी के हवाले से money is the most liquid asset. Okay. और रिटान्ज के हवाले से money per always आपको बहुत लोग रिटान्ज में लेंगे. Okay. और people's money holding decision depend on how much they value liquidity अगे अस्था low return on money. के वो अपनी wealth को, जब money की फाम में रखते है, तो क्या होता क्या? उनको उसका advantage क्या है, और उसकी cost क्या? उसकी cost क्या advantage है कि वो readily available है, ती के most liquid है, उसे जब चाहने, जिस तरा चाहने उसे इसनेमाल कर सकते है, चोटी सी चोटी चीत लेने से लेकर, बढ़ी से बढ़ी चीस, तो उसको transaction के लिए use कर सकते है, उसकी advantage है, लेकर उसकी cost क्या है, के money per usually returns बहुत क्या होते है, कैश पर तो आप जानते है, को रिटान नी नहीं आप ती जईब में कैश है, तो उसको कुछ रिटान नी मिर रहे है, अगर अगर आपने वो बेंक में अपना current account में रख है, तो उसको थोड़े से return मिल जाएंगे, तो ये cost benefit एक तरा से एक analysis है, एक trade off है, कि उसका advantage है, liquidity के form में, कि उसको सहुलत मेर रहे है, कि वजजब चाहे उसे जिस सरा चाहे चिसमाल कर सकते है, लेकन उस सहुलत की वो कीमत की आदा कर है, कि उसके बडले में उसको return forgo करना पार रहे है, तो इस बूनियात पर वो फैसला करेगा, कि वो liquidity को कितना पर आफर करते है, उसके कितनी जरुरत है, तेक है, और returns उसके लिए कितनी है में, इसके बूनियात पर वो फैसला करेगा, कि वो कितनी money demand करेगा. आज हम बात करेंगे, एक ये money demand है, इस पर different macroeconomic variables किस तरा से इस पर असरन्दार डोतें? So, some key macroeconomic variables जो money demand को effect करेंगे, उआज हम दिसकरस करेंगे, परस्वन is the price level, एक अनुमि में अवराल क्या prices कि सुरते हाल है, real income और इसी तरा से, तीसरा factor है, variable है, interest rates. Ok. Price level. Price level का money demand के साथ direct और proportional relationship है. The higher the price level, the more money will be needed for transaction purposes. Ok. So, when prices increase, then if you are in 1980, if you are first in 1980, today's ratio is 10 times higher in 1980, then for the same transactions, the amount of cash you need in 1980 is more than 10 times. So, this means that when prices will double, then you will have to double the money demand for the same transaction. So, there is a direct and proportional relationship. So, nominal money demand is thus the proportional to the price level. Price level, the ratio which is increasing, nominal money demand will also increase by the same proportion. Second, macroeconomic variable, real income. Real income का क्या रोल है? Money, we had to demand for this, so that our transactions do not cause any harm to us and we can do it easily. So, how many transactions will a person do, how much will he spend, how many things will he buy, whether he is an individual or a business form, then his transactions will obviously depend on the individual's income and similarly, the size of the business form will depend on the turnover. So, the more the individual's income or the size of a business, the more transactions he will have to do and the more cash he will need for it. So, this also has a direct relationship, that by increasing the real income of the income, the money demand will increase. So, real income is the prime determinant of the number of transactions you conduct. Now, I have explained this to you. So, money demand rises as real income. Like I said, the direct relationship moves in the same direction. When your income increases, the money demand will also increase. But money demand is not proportional to real income. When we saw money demand as price level, we saw it on money demand. So, we said that it is direct but it is also proportional. If the price level doubles, then your money demand will also double. But if the income doubles, then the money demand rises but it does not double. Less than doubles increases. Higher income individuals use money more efficiently, number one. The reason is that rich people use money efficiently as compared to poor. And since the country's financial sophistication grows as its income rises. And the second reason is that as the economy grows, its income increases. So, the financial instrument of the country also increases. Sophistication increases. Instead of cash, plastic money, credit cards, or use or transaction, or transactions like online, there are more options available. For this, demand for money is less. So, the proportion of income that is increasing, demand for money does not increase from that proportion. So, the result is that many demand rises. When the income rises, many demand rises. But less than one. One to one, there is no correspondence in this. And third factor is macroeconomic variable. That is the interest rate. And increase in the interest rate or return on non-monetary assets decreases the demand for money. We had said that the total wealth of one person is divided into two. Money and non-monetary assets. So, there are bonds, shares and other things in non-monetary assets. So, when the interest rate, when the rate of return on non-monetary assets increases, then what will happen in the third factor? That the money that you have kept with you, you can say that the opportunity will increase. If you invest in it, then you can get returns from that investment. But when you keep it in the form of cash, then you are forego those returns. Okay, they are getting deprived of returns. So, it is obvious that when the amount of interest rate, i.e. you can take bonds, we will take a simple example. Okay, the bonds were offering 10% interest rate. And if you have kept your money in the form of cash, then return is zero or if you have kept it in your current account, then the interest rate is 5%. So, to enjoy that liquidity, now what you are doing is you are forego the interest rate of 5%. Now, if the interest rate of bonds increases from 10% to 12% or 14% or 15% or 20%, then now this sacrifice will increase. Now, you are getting 5% on your current account. And if you keep the money from there and keep it in someone else, then you are getting 20%. So, now it will be difficult for you to forego this. So, whenever the interest rate of non-monetary assets increases, then people will keep their wealth less in the form of money. So, it is a negative relationship. Okay, but there is also another interest rate. This is what I talked about the interest rate that you are getting on non-monetary assets. Your money, your current account, even on that bank pay you some interest rate. Like I said, you get 5% on that. So, if that increases, then what will be the impact of this? That you will increase in the demand of money. That is, the impact of increasing the interest rate on non-monetary assets will be that the demand of money will decrease. And the impact of increasing the interest rate on monetary assets is that the demand of money will increase. So, this occurs as people trade off liquidity for return. I am talking again and again that the demand of money is basically a trade-off. There is liquidity on one side and returns on the other side. If you have to forego return to enjoy more liquidity, then this is a trade-off. Okay, so now there are many non-monetary assets with many different interest rates because they often move together. We assume that for non-monetary assets there is just one nominal interest rate. That we have said for simplification that there are only two types of assets. One is called money and the other is called non-monetary asset. Now, there are many varieties of non-monetary assets. And obviously, there will be a different type of interest rate on each of them. And similarly, there are different types of money such as cash or your current account. So, there will be different interest rates on these too. But for the sake of simplicity again, we assume that all the non-monetary assets have the same interest rate. In the same sense, we are saying that all of them are different but they all move in the same way. If there is an increase, then in almost all of them there is an increase or an decrease. So, without this, we can say that the interest rate of non-monetary assets is common interest rate. And we denote it from i. And we denote the interest rate on the money as common interest rate. Okay, thank you.