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the economics of populationpopulation issues became matters of economic concern when it became increasingly apparent that the problem of excess
the structure of population and supply of labourthe structure also called age distribution or composition of population or the number of people in
population size and demographic trendsa changes in populationthe people of a country are its consumers they provide the
interest and the keynesian liquidity preference theoryinterest is a factor income in that it is considered to be payment to or return on capital in
capital marketsmarkets in which financial resources money bonds stocks are traded ie the provision of longer term finance - anything from bank loans
function of money marketsthe money markets are the place where money is wholesaled as such the supply of money and interest rate which are of
money marketsthe expression money markets is used to refer to the set of institutions and individuals who are engaged in the borrowing and lending of
limits on the process of bank deposit creationon the demand side there may be a lack of demand for loans or at least of borrowers who are
bank depositbank notes and coins together constitute the currency in circulation but they form only a part of the total money supply the
functions of commercial banksin modern economy commercial banks have the following functionsi they provide a safe deposit for money and
commercial banksa commercial bank is a financial institution which undertakes all kinds of ordinary banking business like accepting deposits
general and selective credit controlthese are imposed with the full apparatus of the law or informally using specific instructions to banks and other
direct control and moral suasionwithout actually using the above weapons the central bank can attempt simply to use moral suasion to persuade the
supplementary reserve requirementsspecial depositif the central bank feels that there is too much money in circulation it can in addition require
variable reserve requirement cash and liquidity ratiosthe central bank controls the creation of credit by commercial banks by dictating cash and
discount rate bank ratethis is the rate on central bank advances and is also called official discount rate or minimum lending rate when
open market operationsthe central bank holds government securities it can sell some of these or buy more on the open market buying or selling
the central bankthese are usually owned and operated by governments and their functions arei governments banker governments
the banking systemconsists of all those institutions which determine the supply of money the main element of the banking system is the commercial
determinants of the money supplytwo extreme situations are imaginable in the first situation the money supply can be determined at exactly the
the supply of moneyrefers to the total amount of money in the economymost countries of the world have two measures of the money stock - broad money
demand for money the demand for money is a more difficult concept than the demand for goods and services it refers to the desire to hold ones
the quantity theory of moneyin the 17th century it was noticed that there was a connection between the quantity of money and the general level of
the determination of the value money since money is primarily a medium of exchange the value of money means what money will buy if at one time