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Q. Describe the working of Commercial banks?
Fact that currency inside commercial banks isn't money may strike you as odd though it is an important principle. 100 dollar bill in the ATM will become money only at the instant you withdraw it. The reason is this. We want the money supply to measure how much is available for immediate consumption. Though currency inside a bank can't be used for consumption and this is why it isn't counted in the money supply. Cash in the bank isn't money though the binary bits in the bank's computer system representing the balance in your checking account are?
An illustration may also explain this important fact:
Although currency inside a bank isn't money, it's still part of the monetary base. 100 euro inside the bank is clearly still worth 100 euro to the bank although we don't include it in the money supply.
Newspaper vending machines are designed so that once you have paid for one paper; you have access to all the papers in the machine and could take multiple papers at a time. However
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Ask question #Minimum 100 words accepWith aid of evidence in the given article, comprehensively discuss the market structure in the South African mobile telecommunications industry
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