SUPPLY OF MONEY AND FACTORS AFFECTING IT’S DISTRIBUTION

 SUPPLY OF MONEY

Definition: The supply of money refers to the total amount of money available for use in the economy at a given period of time.

The supply of money involves the currency in the form of bank notes and coins circulating outside the banking system as well as the bank deposits in current accounts, which can be withdraw by cheque (i.e. bank money

meaning of economics

MONEY: DEMAND FOR AND SUPPLY OF MONEY

  • Identify the various motives for holding wealth in the form of money
  • Explain the elementary quantity theory of money
  • Identify the determinants of the supply of money
  • Explain how changes in the price level affect the purchasing power of money.

FACTORS AFFECTING THE SUPPLY OF MONEY

  • Bank rate: Bank rate is the rate of interest which the Central Bank charges the commercial banks for lending money to or from them and discounting their bills. If the bank rate is high it will discourage banks from borrowing, discounting of deposits commercial banks are expected to keep with them. Assuming that the
    cash reserve is high, the supply of money

  • Cash reserve: Cash reserve, also called cash ratio, is the percentage of the deposits commercial banks are expected to keep with them. Assuming that the cash reserve is high, the supply of money will definitely be low and vice versa.
  • Economic situation: During the period of inflation in an economy, the central bank will reduce the supply of money and increase it during the period of deflation.
  • Demand for excess reserves: When commercial banks demand for excess reserves, the supply of money will increase.

  • Total reserves of the central bank: The supply of money is affected by the total reserves of the central bank. If the total money supplied by the central bank is high money supply will also be high, and vice versa.

  1. economic tools for nation building
  2. budgeting
  3. factors affecting the expansion of industries
  4. mineral resources and the mining industries
  5. demand and supply
  6. types of demand curve and used
  7. advertising industry
  8. factors of production
  9. entrepreneur
  10. joint stock company
  11. public enterprises
  12. private enterprises
  13. limited liability companies
  14. migration
  15. population
  16. market concept
  17. money market
  18. shares
  19. how companies raises funds for expansion
  20.  

WEED AND THEIR BOTANICAL NAMES
1. ENVIRONMENTAL FACTORS AFFECTING AGRICULTURAL PRODUCTION
2. DISEASES
3. 52. SOIL MICRO-ORGANISMS
4. ORGANIC MANURING
5. FARM YARD MANURE
6. HUMUS
7. COMPOST
8. CROP ROTATION
9. GRAZING AND OVER GRAZING
10. IRRIGATION AND DRAINAGE
11. IRRIGATION SYSTEMS
12. ORGANIC MANURING
13. FARM YARD MANURE
14. HUMUS
15. COMPOST
16. CROP ROTATION

  1. IRRIGATION AND DRAINAGE
    19. IRRIGATION SYSTEMS
    20. INCUBATORS
    21. MILKING MACHINE
    22. SIMPLE FARM TOOLS
    23. AGRICULTURAL MECHANIZATION
    24. THE CONCEPT OF MECHANIZATION
    25. PROBLEMS OF MECHANIZATION
    26. SURVEYING AND PLANNING OF FARMSTEAD
    27. IMPORTANCE OF FARM SURVEY
    28. SURVEY EQUIPMENT
    29. PRINCIPLES OF FARM OUTLAY
    30. SUMMARY OF FARM SURVEYING
    31. CROP HUSBANDRY PRACTICES
    32. PESTS AND DISEASE OF MAIZE- ZEA MAYS
    33. CULTIVATION OF MAIZE CROP
    34. OIL PALM
    35. USES OF PALM OIL
    36. MAINTENANCE OF PALM PLANTATION
    37. COCOA

meaning of economics


38.
39. PROCESSES IN COCOA CULTIVATION
HOLING AND LINING
40. YAM
41. LAND PREPARATION FOR YAM
42. DEPT OF PLANTING
43. SPACING OF YAM
44. PLANTING DEPT OF YAM
45. STORAGE OF YAM
46. STAKING OF YAM
47. HARVESTING OF YAM
48. COWPEA
JUTE
49. FORAGE CROP AND PASTURE
50. FORAGE GRASSES
51. SILAGE
52. PASTURE
53. TYPES OF PASTURE
COMMON GRASSES AND LEGUMES
54. GRASSES
55. LEGUMES
56. ESTABLISHMENT OF PASTURES
57. 201. FORAGE PRESERVATION
58. HAY SILAGE
59. FORESTRY IMPORTANCE OF FORESTRY 206. FOREST MANAGEMENT FOREST REGULATION DEFORESTATION AFFORESTATION
60. DISEASES AND PESTS OF CROPS
61. MAIZE SMUT
62. RICE BLAST
63. MAIZE RUST
64. LEAF SPOT OF GROUNDNUT
65. COW-PEA MOSAIC
66. COCOA BLACK POD DISEASE

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