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define elasticity of supply what factors influence elasticity of supply there is only one type of identifiable elasticity of supply measuring the
q show factors that govern the price elasticity of demanda the number and closeness of the substitutes- the more and the better the substitutes the
q what is national income what are the different methods of measuring national incomenational income is the aggregate money value of the annual flow
q overnight interest rates targets and money supplythere are many ways to explain the significant connection between overnight interest rate target
q monetary base and the supply of moneyit isnt possible for central bank to print and distribute money -which would increase their debt without
q describe about monetary policyby monetary policy we mean policy directed at controlling the money supply and interest rates in most nations central
q central bank overnight interest rateovernight interest rate is a significant interest rate for a central bank and it has methods of influencing
q define market for overnight loansthe market for overnight loans overnight interest rates are rates for loans over a single night - these are the
q illustrate diffrent types of interest ratesthere are many other interest rates in a society for instance you will earn interest when you deposit
q what do you mean by yield curveyield curve is a graph of interest rates of different maturity recalculated to yearly rates at a specific point in
calculating interest rates on a yearly basis if maturity is different from one year interest rate is generally recalculated to a corresponding one
relationship between the interest rate and the bond price note that the higher the issue price the lower the interest rate similarly when the price
q describe market interest ratesthe most significant interest rates from a macroeconomic perspective are interest rates that government pays on the
q explain about interest ratewhen you borrow money you normally have to pay a fee for the loan this fee is frequently known as interest especially if
q show the example on multiplier effectemma makes a deposit emma has 1000 in her mattress and decides to deposit it
q what do you mean by multiplier effectloans and deposits in banks give rise to a significant multiplier effect we use a simple instance to explain
q how much money can banks createdoes that mean that banks can create an unlimited amount of money no the answer is no - it would require them to
q how commercial banks create moneycommercial banks clearly cant influence the amount of currency in economy or monetary base because they arent
q describe the working of commercial banksfact that currency inside commercial banks isnt money may strike you as odd though it is an important
q explain about monetary basemonetary base is defined as the total value of all currency coins andbanknotes outside the central bank and commercial
q what is the basic function of central banksa central bank is a public authority which is responsible for monetary policy for a country or a group
money is generally considered to have three economic functions a medium of exchange this is its most significant role without money we would live in
q relation between money - wealth and incomemoney isnt the same as wealth an individual may be very wealthy however have no money for instance by
q what is money and what is not moneyif you are trying to conclude if something is money basically consider whether it would be accepted in most
q illustrate diffrent types of moneyin most countries one may identify two types of moneybank depositscurrency and coins the total value of all