Economics

NameClassLecturerDate : May 7 , 2009Money , Banking and Financial MarketsMoney is anything that is gener ally acceptable as a medium of exchange within and outside the orbit . There are various functions of specie that make it so widely acceptable and they includeFor the economy to be stable , the contribute and demand of money needs to be regulated . The political economy of money , banking and other financial markets is important as they greatly determine how the banking system operates The individuals have and the monetary base that is held by the State . It can also include cash that is held in foreign central banks . Commercial banks play a major(ip) role in the economy as they accept deposits and interpret loans to its borrowers .

The banks do not have to lend out all the money that is deposited as they have to reserve a musical composition of it so that they can refund their borrowers their cash when they ask for them . On top of this , banks also deal with treasury bills that are supernumerary funds to the cash they hold . The reserves held at the federal bank comprise of vault cash and depositsThe amount of money supplied in the economy is usually determined by the spend and saving behaviour of the public . The central bank then acts to address the various changes by adjusting interest rates . For this land if the central bank does not regulate...If you want to get a full essay, order it on our website: Ordercustompaper.com

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