Limits on the process of bank deposit creation, Managerial Economics

Limits on the process of bank deposit creation

On the demand side, there may be a lack of demand for loans, or at least of borrowers who are sufficiently credit worthy.   On the supply side, the volume of bank deposits will not in general rise and fall as a result of changes in the amount of cash held or deposited by the public, since the public's currency requirements tends to be fairly stable, and roughly proportional to the volume of transactions.

Posted Date: 11/29/2012 4:57:56 AM | Location : United States

Related Discussions:- Limits on the process of bank deposit creation, Assignment Help, Ask Question on Limits on the process of bank deposit creation, Get Answer, Expert's Help, Limits on the process of bank deposit creation Discussions

Write discussion on Limits on the process of bank deposit creation
Your posts are moderated
Related Questions
Problem 1: Using relevant examples, discuss the pricing strategies that firms can use to capture value from their customers. Problem 2: You are a manager in a perfectl

WHY MANAGERS NEED TO KNOW ECONOMICS The influence of economics towards the performance of managerial duties and responsibilities is of major importance. The importance and cont

Question 1: a. Discuss the alternative theories of money demand. b. Highlight the impact of financial liberalization on the money demand in a small island developing econo

Antitrust authorities at the Federal Trade Commission are reviewing your company's recent merger with a rival firm. The FTC is concerned that the merger of two rival firms in the s

Q. Construction of the causal model - regression analysis? The construction of an explanatory model is a crucial step in the regression analysis. It should be defined with refe

Aside from the price of a product and its substitutes, another significant element of demand for a product is consumer's income. As noticed previously, relationship between demand

Q. Simon satisfying behaviour model? The behavioural approach as developed in particular by Richard Cyert and James G. March of the Carnegie School, lays emphasis on explaining

Q. Show the example on transaction cost theory? Coase begins from standpoint that markets could in theory carry out all production and that what needs to be illustrated is th

features of monopoly

Marginal Utility The extra utility derived from the consumption of one more unit of a good, the consumption of all other goods remaining unchanged. The hypothesis of dimin