Day: March 4, 2023

3.1 Money demand The demand for money is the desired holding of financial assets in the form of money, that is, cash or bank deposit. It can refer to the demand for money narrowly defined as M1 (non-interest bearing holding) Read More …

2.1 Financial markets Financial market are institutions or arrangements that facilitate the exchange of financial assets, including deposits and loans, corporate stocks and bonds, government bonds, and more exotic instruments such as options and futures contracts. They are mechanism in Read More …

INTRODUCTION Money and banking are two subjects closely intertwined with our daily lives and with the very day functioning of our economy. On atypical day, you encounter money and banks in many firms like from the obvious contact made when Read More …

TOPIC 1: MONEY BANKS – Click to view TOPIC 2: FINANCIAL MARKETS, FINANCIAL INSTITUTIONS AND FINANCIAL INSTRUMENTS – Click to view TOPIC 3: MONEY DEMAND AND SUPPLY – Click to view TOPIC 4: MONEY AND INFLATION – Click to view Read More …

This is a persistent and generalized increase in price levels  making the consumers to have a low purchasing power. It is a process in which price levels are rising at a rapid rate and money is losing value. It is Read More …

The Determinants of Rate of Exchange The determination of foreign exchange rate can be traced from two theories of exchange rates. The Mint Power Parity Purchasing Power Parity The Mint Power Parity relates to equating standard coins of different countries Read More …