Author: admin
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Explain the Components of Aggregate Supply or National Income.
The money value of all the final goods and services that all the producers are willing to supply in a given time period in an economy is known as Aggregate Supply. Also, when we express aggregate supply in physical terms, then it is an economy’s total output of goods and services. The value of total output…
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Components of Aggregate Demand
What is Aggregate Demand? The word aggregate in the Aggregate Demand means ‘Total’, therefore, Aggregate Demand indicates the total demand of an economy. Aggregate Demand refers to the total demand for finished goods and services in the economy over a specific period. It also refers to a country’s Gross Domestic Product (GDP) demand. Aggregate demand…
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Functions of Central Bank
What is Central Bank? An apex body that controls, operates, regulates, and directs a country’s banking and monetary structure is known as a Central Bank. As the functions of a central bank are peculiar, there is only one central bank in a country. Every financially developed country has its own central bank. For example, the central bank of the…
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Money Multiplier
Money is a concept that is much easier to understand than to explain in the form of words. However, it can be described as an instrument or thing that is generally accepted as a mode of payment or as a Medium of Exchange in the economy, like a Rupee in India, a Dollar in the USA, or a Yen…
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Credit Creation
Money is a concept that is much easier to understand than to explain in the form of words. However, it can be described as an instrument or thing that is generally accepted as a mode of payment or as a Medium of Exchange in the economy, like a Rupee in India, a Dollar in the USA, or a Yen…
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Commercial Banks
What are Commercial Banks? A commercial bank is a financial institution that provides services like accepting deposits, granting loans, bank overdrafts, offering certificates of deposits, and savings accounts to individuals and businesses. Commercial banks are considered to be an important component of the banking system. These are the banks that perform banking services with the aim…
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Demand for Money
Money is anything that is generally accepted as a medium of exchange, a store of value, a measure of value, and a means for the standard of deferred payment. Money considers everything that can be used for an accomplishment of a business transaction and settlement of the business claims like currency notes, coins, cheques, etc.…
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Classification of Money
Money is any object or item which is generally accepted as a mode for payment of goods & services and repayment of loans or debts such as taxes, etc., in a particular nation or country. Money was invented to facilitate trade as the barter system was not able to express the value and prices of goods…
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Contingent, Static and Dynamic Functions of Money
Money is any object or item which is generally accepted as a mode for payment of goods & services and repayment of loans or debts such as taxes, etc., in a particular nation or country. Money was invented to facilitate trade as the barter system was not able to express the value and prices of goods…
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Functions of Money
Money is any object or item which is generally accepted as a mode for payment of goods & services and repayment of loans or debts, such as taxes, etc., in a particular nation or country. Money was invented to facilitate trade as the barter system was not able to express the value and prices of goods…