Month: November 2020

Facilitate rapid and steady economic growth. Create full Stabilize prices of commodities Ensure balanced development. Enhance equilibrium in balance of payments. Foreign Exchange rate stability. Moop out excess liquidity Control business cycles. Intrest rate stability. Financial market stability.

Accepting deposits-they play a vital role in economy mobilizing domestic savings and enabling efficiency and convenience in transactions accepting depositsie cash items,warrants,E.F.Ts,night safes etc in three main accounts ie Current accounts. Deposits of any amount can be made Read More …

Banking  refers to all the activities carried out financial institutions involving money.this financial institutions include:central bank,commercial banks and non banking financial institutions e.g. industrial and commercial development corporation(I.C.D.C).Some important terms in banking. Bank statements: This is a list of Read More …

Commercial banks do not cooperate fully within the central bank A government monetary system may be reduced or increased in size and controlled tightly without deleterious effects on its performance,however monetary system contains commercial banks that are in business for Read More …

This refers to the stock of monetary items that are in circulation in an economy at a particular point in time.these items basically consists of;total currency ie notes and coins issued central bank and the total demand deposits.the following Read More …

Demand for money refers to the tendancy or desire an individual or general public to hold onto money instead of spending it.it is also known as liquidity preference.money can be hold individuals in various forms and these include;currency Read More …

Buyers and sellers are able to get the goods and services they require immediately after the exchange. A country/person is able to dispose off the surplus. Promotes social relations among the trading communities,through negotiations Promotes specialization in the production of Read More …

This refers to exchange of goods and services for goods and services.this trade has several drawbacks. It is difficult to estimate the value of one good with another It depended on double coincidence o wants between traders. Perishability of some Read More …

Medium of exchange-money is generally acceptable everybody in exchange for goods and services.it therefore enables trade to be carried out conveniently hence reducing drawbacks of barter trade Measure of value-when commodities are valued in terms of money,a problem of Read More …

For a commodity to perfom as money it has to have the following characteristics. Acceptability-money must be acceptable to everyone for it to be used as a medium of exchange Durability-should be able to last for a long time without Read More …