China embarked on its ‘open door policy’ in 1978 under the leadership

1
Business Environmentinfo_at_answersheets.in91
95030-94040
2

• Business Environment
•  
• CASE STUDY (20 Marks)
• China embarked on its open door policy in
  1978 under the leadership of Deng Xiaoping. The
  purpose was to bring about a transition in its
  centrally planned economy towards a market
  economy. The banks were supposed to play a major
  role in carrying out the reformist agenda of the
  country.

3

• Since then the country has achieved a
  phenomenal Gross Domestic Product (GDP) growth
  rate making it the fastest growing economy of the
  world. There was tremendous effect of Chinese
  economic reforms on the countrys banking sector.
  It also helps in analyzing the role of banking
  system in implementing monetary policy and its
  reaction to spiraling inflation.

4

• Answer the following question.
• Q1. Analyze the process of economic reforms in
  China and their effectiveness on the banking
  sector
• Q2. Explain about monetary policy and money
  multiplier effects on the economy.
• Q3. Analyze the reasons for the overheating of
  the economy
• Q4. Analyze the measures taken by the government
  in order to restructure the banking system.
•  

5

• www.answersheets.in
• info.answersheets_at_gmail.com
• info_at_answersheets.in
• 91 95030-94040