Economics Role of Commercial Banks 31 May 2020 Role of Commercial Banks in Economic Development - The rate of economic development depends on the rate of capital formation. The rate of capital formation depends on the rate of…
Economics… Functions of Commercial Banks 30 May 202031 May 2020 Functions of Commercial Banks - The main functions of commercial banks are to receive deposits and advance loans. Banks borrow in form of deposits and lend in form of advances…
Economics… Commercial Banking – Origin and Evolution 29 May 2020 Commercial Bank - It is a business organization which borrows and lends money, and makes profits in the process. The difference between a money lender and a commercial bank is…
Economics… Credit – Meaning, Functions and Purpose 28 May 2020 Credit - Credit is created when one party (a person, a firm) lends money to another party, the borrower. In general, credit mean the finance provided to others at a…
Economics Role of Money in Economic Development 27 May 202027 May 2020 Role of Money in Economic Development of The Developing Countries - Generally it is believed that the economic development of a country depends on the growth of real factors like…
Economics… Importance of Money 26 May 2020 Importance of Money - According to the classical economists, money only affects the price level in the economy and it has no effect on the levels of the real income…
Economics… Managed Currency Standard or Modern Monetary System 25 May 2020 Managed Currency Standard or Modern Monetary System - Paper money has a very important role in our modern economic or monetary system. The term paper money only applies to the…
Economics… Forms of Money 24 May 2020 Money of Account - It is the monetary unit in which the accounts of a country are kept and transactions settled, means, in which general purchasing power, debt and prices…
Economics… Money and Its Functions 23 May 2020 Definition of Money - Professor D.H. Robertson defines money as "anything which is widely accepted in payment for goods or in discharge of other forms of business obligations." According to…
Economics… Evolution of Money 22 May 2020 Before we study what is money, we need to understand its evolution. So, let's begin ... Evolution of Money - In the beginning money wasn't the same as we know…
Economics… Barter System and Its Difficulties 21 May 2020 Barter System and its Difficulties - Barter System - It is system of exchange in which goods or services are exchanged with other goods or services directly. In the starting…
Economics Sacrifice Ratio and Rational Expectations 20 May 202023 May 2020 Sacrifice Ratio and Rational Expectations - Rational Expectations hypothesis assumes that people use all the available information including government's fiscal and monetary policies to predict the future. They correctly predict…
Economics Sacrifice Ratio and Policy of Disinflation 19 May 202019 May 2020 Sacrifice Ratio and Policy of Disinflation - Disinflation policy has been the objective of policy makers. But disinflation or reduction in inflation rate involves the cost to the society in…
Economics Relationship between Short Run and Long Run Phillips Curves 18 May 202018 May 2020 Relationship between Short Run and Long Run Phillips Curves - The position of a short run Phillips curve (SPC) which passes through a point on the long run Phillips curve…
Economics Long Run Phillips Curve and Rational Expectations 17 May 202018 May 2020 Long Run Phillips Curve And Rational Expectations - The viewpoint about inflation and unemployment put forward by Rational Expectations Theory which is the cornerstone of recently developed macroeconomic theory, popularly…
Economics Long-Run Phillips Curve and Adaptive Expectations 16 May 2020 Long-Run Phillips Curve and Adaptive Expectations - The concept of long-run Phillips curve was given by Friedman and other natural rate theorists. According to them, the economy will not remain…
Economics Natural Rate Hypothesis and Adaptive Expectations 15 May 2020 Natural Rate Hypothesis and Adaptive Expectations - Friedman's View Regarding Phillips Curve Another explanation of occurrence of a higher rate of inflation simultaneously with a higher rate of unemployment was…
Economics Collapse of and Shift in – Phillips Curve 14 May 2020 Collapse of Phillips Curve in the USA (1971-91) - During the sixties Phillips curve became an important concept of macroeconomic analysis. The stable relationship described by it suggested that policy…
Economics Inflation – Unemployment Trade-Off — Phillips Curve 13 May 2020 Inflation - Unemployment Trade-Off --- Phillips Curve Keynesian Explanation of Phillips Curve - The explanation of Phillips Curve by the Keynesian economists is quite simple. Keynesian economists assume the upward…
Economics Inflation – Unemployment Trade-off — Introduction 12 May 2020 Inflation - Unemployment Trade-off --- Introduction Inflation and Unemployment - Keynesian Model of Economy - In simple Keynesian model of economy, the aggregate supply curve (with variable price level) is…
Economics Median – Measure of Central Tendency 11 May 2020 Median - Median is defined as the middle value of the series when arranged either in ascending or descending order. It is denoted by 'M'. M = [(N+1)/2] th item.…
Economics Keynes’s Theory of Business Cycles 10 May 2020 Keynes's Theory of Business Cycles John Maynard Keynes was an British economist. He wrote book 'General Theory of Employment, Interest and Money' in 1936. According to Keynes's theory, in the…
Economics… Economics Terms Series Part 7 – Wealth, Salary, Utility, Miscellaneous 9 May 20209 May 2020 WEALTH The stock of financial and non-financial assets a person or a household owns that have monetary value. SALARY An annual rate of pay, often paid to employees in professional…
Economics Business Cycles – Theory of Over-Investment 8 May 2020 Theory of Over-Investment - It has been observed that over time investment varies more than that of the total output of final goods and services and consumption. This has led…
Economics Business Cycles – Theory of Under Consumption 7 May 2020 Theory of Under Consumption is also one of the oldest theory of business cycles, it was given in the 1930s. Malthus and Sismodi criticized Say's Law which states that 'Supply…
Economics… Economics Terms Series Part 6 – Assets, Revenues, Capitals, Sectors, Diseconomies, Population, Merger, Miscellaneous 6 May 2020 PHYSICAL ASSETS Non-financial assets or physical products, such as commercial and residential properties, that have value and therefore contribute to wealth. FINANCIAL ASSETS Non-physical assets, such as bank deposits, shares,…
Economics Business Cycles – Hawtrey’s Monetary Theory of Business Cycles 5 May 2020 R.G. Hawtrey's Monetary Theory of Business cycles is based on the Gold Standard Economy. An economy is said to be under gold standard when either money in circulation consists of…
Economics Business Cycles – Sun Spot Theory of Business Cycles 4 May 2020 Sun Spot Theory Sun Spot Theory of Business Cycles was developed in 1875 by Stanley Jevons. This is one of the oldest theory of business cycles. Sun Spots are storms…
Business… Passive Income Series – How to create Skill Based Income Source 3 May 202013 Jun 2021 Passive Income - Skill Based Income Source Skill Based Income which can be Passive or Semi-Passive or Semi-Active depending on the skills the person have. Today we will be looking…
Economics… Economics Terms Series Part 5 – Trade, Trade Barriers, Balance of Payments, Stock Market, Stock Exchange, Shares 2 May 20203 May 2020 TRADE The exchange of goods and services, usually for money. INTERNATIONAL TRADE The movement and exchange of physical goods such as materials, component parts, equipment and finished products as well as…
Economics… Economics Terms Series Part 4 – Types of Taxes, Types of Rates, Boom, Recession, Recovery, Growth 1 May 20203 May 2020 PERSONAL INCOME TAX A direct tax on a person’s earnings or income. CORPORATE INCOME TAX A tax on company profits. DIRECT TAX A tax levied on the incomes or wealth…
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