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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 …

CORE CONCEPTS IN CORPORATE FINANCE. Forward contracts. This is a market for currencies that enables a MNC to lock in the exchange rate(forward rate) at which it buys or sells a currency.it specifies the amount of a particular currency that Read More …

The financial market deals with the purchase and sale of money. It therefore involves obtaining money from those who have more than they need by attracting it either as: deposits through commercial banks; premiums through insurance companies; units or shares Read More …

Money is any asset that is generally acceptable as a means of payment to settle transactions as well as a medium of exchange.it is anything that is generally acceptable for payment of debts. Stages in development of money Historically, the Read More …

There are five major forms of economic policy (or, more strictly macroeconomic policy) conducted by governments that are of relevance. These are: monetary policy; fiscal policy; exchange rate policy; prices and incomes policy; and national debt management policy. Monetary policy Read More …

Interest rate is the price that a borrower of funds must pay to the lender to secure use of funds for a specified period. An interest rate is a predetermined or negotiated payment made or received for the temporary use Read More …

METHODS OF OPERATION OF THE CENTRAL BANK INCLUDING PRUDENT REGULATION OF THE FINANCIAL SYSTEM. Functions of central bank-Money and banking handout. The rationale for regulation Financial systems are prone to periods of instability. In recent years, a number of financial Read More …