The document discusses monetary aggregates and the Egyptian case. It defines reserve money (M0) as composed of currency and bank deposits with the central bank. Counterpart assets of reserve money include net foreign assets and net domestic assets. For Egypt, data on reserve money and its counterpart assets from 2006-2011 is presented, showing trends in currency, bank deposits, foreign assets, government securities and more.
This document discusses money and banking. It defines money as any commodity that is generally accepted as a medium of exchange and a measure of value. Money serves four main functions: a medium of exchange, a measure of value, a standard of deferred payment, and a store of value. The supply of money comes from high powered money, credit money, and non-banking financial institutions. The Reserve Bank of India measures money supply using four measures: M1, M2, M3, and M4. The demand for money can be explained by the quantity theory of money, the Cambridge approach, and the Keynesian approach which identifies three motives for holding money: transactions, precautionary, and speculative.
This document discusses the history and functions of money and banking. It begins by defining money as a medium of exchange, unit of account, and store of value. It then outlines the evolution of money from barter systems to commodity money to metallic coins to paper money. The document also discusses the functions of money and classifications of money. Next, it covers the history of banking from goldsmith bankers issuing receipts for gold deposits to merchant bankers facilitating trade through letters of credit. It emphasizes how fractional reserve banking developed and the importance of financial intermediaries in mobilizing savings and allocating capital. Overall, the document provides a comprehensive overview of the key concepts regarding money, banking systems and their role in economic development.
How Financial Mathematics Focuses On Business And Others Mathematical Discipl...QUESTJOURNAL
ABSTRACT: Simply, Finance is the science of Fund’s Management. It includes saving money and often includes lending money. Financial mathematics, also known as quantitative finance, is a field of applied mathematics, concerned with financial markets. Generally, mathematical finance will derive and extend the mathematical or numerical models without necessarily establishing a link to financial theory, taking observed market prices as input. Mathematical consistency is required, not compatibility with economic theory. Thus, for example, while a financial economist might study the structural reasons why a company may have a certain share price, a financial mathematician may take the share price as a given, and attempt to use stochastic calculus to obtain the corresponding value of derivatives of the stock . The fundamental theorem of arbitrage-free pricing is one of the key theorems in mathematical finance. Mathematical finance also overlaps heavily with the fields of computational finance and financial derivatives & engineering. The goal of derivatives pricing is to determine the fair price of a given security in terms of more liquid securities whose price is determined by the law of supply and demand. The meaning of "fair" depends, of course, on whether one considers buying or selling the security. Examples of securities being priced are plain vanilla and exotic options, convertible bonds, etc.
This document provides an overview of monetary and banking systems. It defines money and discusses its origins, characteristics, types, and functions. It examines the demand for money, including transactions, precautionary, and speculative demand. It also discusses the money supply in Sri Lanka and classifies it into different monetary aggregates like M1 (narrow money supply), M2 (broad money supply), and M2b (consolidated broad money). Finally, it discusses the role of the central bank in providing monetary aggregates and regulating the financial system.
The document provides an overview of the evolution of money and the monetary system in India. It discusses the development from barter systems to various forms of money like commodity money, metallic money, paper money, and digital money. It describes the functions of money as a medium of exchange, store of value, and standard of deferred payments. It also discusses key concepts like the money supply and its components, sources of money supply, the role of the central bank (Reserve Bank of India) and commercial banks in money creation through credit. It provides definitions of legal tender money and different measures of money supply used in India.
Paper gives an explanation on how money is created in the modern economy ;through extension of credit in comparison with the traditional money creation process which relies on deposits to create money. It bases on three theories of banking ;the theory of financial intermediation ;fractional reserve theory as well as the the theory of credit creation ,giving an empirical analysis on which theory truly explains money creation in todays economy.
This document discusses money supply and the banking system. It defines different measures of money supply (M1, M2, M3, M4) and explains how money is created through the banking system. Banks act as intermediaries that accept deposits and create money through lending. This expands the money supply through the money multiplier process. The money supply is determined by factors like public behavior, commercial bank behavior, and central bank influence. The money market reaches equilibrium where the demand for money equals the supply.
This document discusses the definition and functions of money. It begins by defining money, currency, wealth, and income. It then outlines the three main functions of money: as a medium of exchange, unit of account, and store of value. The document discusses how money is measured through various monetary aggregates (M0, M1, M2) as defined by the IMF. It also traces the evolution of payment systems from barter to various forms of currency. The key points are that money serves critical economic functions and its definition has evolved as payment systems advanced over time.
This document discusses money and banking. It defines money as any commodity that is generally accepted as a medium of exchange and a measure of value. Money serves four main functions: a medium of exchange, a measure of value, a standard of deferred payment, and a store of value. The supply of money comes from high powered money, credit money, and non-banking financial institutions. The Reserve Bank of India measures money supply using four measures: M1, M2, M3, and M4. The demand for money can be explained by the quantity theory of money, the Cambridge approach, and the Keynesian approach which identifies three motives for holding money: transactions, precautionary, and speculative.
This document discusses the history and functions of money and banking. It begins by defining money as a medium of exchange, unit of account, and store of value. It then outlines the evolution of money from barter systems to commodity money to metallic coins to paper money. The document also discusses the functions of money and classifications of money. Next, it covers the history of banking from goldsmith bankers issuing receipts for gold deposits to merchant bankers facilitating trade through letters of credit. It emphasizes how fractional reserve banking developed and the importance of financial intermediaries in mobilizing savings and allocating capital. Overall, the document provides a comprehensive overview of the key concepts regarding money, banking systems and their role in economic development.
How Financial Mathematics Focuses On Business And Others Mathematical Discipl...QUESTJOURNAL
ABSTRACT: Simply, Finance is the science of Fund’s Management. It includes saving money and often includes lending money. Financial mathematics, also known as quantitative finance, is a field of applied mathematics, concerned with financial markets. Generally, mathematical finance will derive and extend the mathematical or numerical models without necessarily establishing a link to financial theory, taking observed market prices as input. Mathematical consistency is required, not compatibility with economic theory. Thus, for example, while a financial economist might study the structural reasons why a company may have a certain share price, a financial mathematician may take the share price as a given, and attempt to use stochastic calculus to obtain the corresponding value of derivatives of the stock . The fundamental theorem of arbitrage-free pricing is one of the key theorems in mathematical finance. Mathematical finance also overlaps heavily with the fields of computational finance and financial derivatives & engineering. The goal of derivatives pricing is to determine the fair price of a given security in terms of more liquid securities whose price is determined by the law of supply and demand. The meaning of "fair" depends, of course, on whether one considers buying or selling the security. Examples of securities being priced are plain vanilla and exotic options, convertible bonds, etc.
This document provides an overview of monetary and banking systems. It defines money and discusses its origins, characteristics, types, and functions. It examines the demand for money, including transactions, precautionary, and speculative demand. It also discusses the money supply in Sri Lanka and classifies it into different monetary aggregates like M1 (narrow money supply), M2 (broad money supply), and M2b (consolidated broad money). Finally, it discusses the role of the central bank in providing monetary aggregates and regulating the financial system.
The document provides an overview of the evolution of money and the monetary system in India. It discusses the development from barter systems to various forms of money like commodity money, metallic money, paper money, and digital money. It describes the functions of money as a medium of exchange, store of value, and standard of deferred payments. It also discusses key concepts like the money supply and its components, sources of money supply, the role of the central bank (Reserve Bank of India) and commercial banks in money creation through credit. It provides definitions of legal tender money and different measures of money supply used in India.
Paper gives an explanation on how money is created in the modern economy ;through extension of credit in comparison with the traditional money creation process which relies on deposits to create money. It bases on three theories of banking ;the theory of financial intermediation ;fractional reserve theory as well as the the theory of credit creation ,giving an empirical analysis on which theory truly explains money creation in todays economy.
This document discusses money supply and the banking system. It defines different measures of money supply (M1, M2, M3, M4) and explains how money is created through the banking system. Banks act as intermediaries that accept deposits and create money through lending. This expands the money supply through the money multiplier process. The money supply is determined by factors like public behavior, commercial bank behavior, and central bank influence. The money market reaches equilibrium where the demand for money equals the supply.
This document discusses the definition and functions of money. It begins by defining money, currency, wealth, and income. It then outlines the three main functions of money: as a medium of exchange, unit of account, and store of value. The document discusses how money is measured through various monetary aggregates (M0, M1, M2) as defined by the IMF. It also traces the evolution of payment systems from barter to various forms of currency. The key points are that money serves critical economic functions and its definition has evolved as payment systems advanced over time.
Money and Banking introduction slides pptOsama Yousaf
This document discusses money and banking concepts. It defines money as anything generally accepted in exchange for goods and services, and identifies four key functions of money: medium of exchange, unit of account, store of value, and standard of deferred payment. It also discusses the money supply, functions of banks and other financial institutions, international banking, and how the banking system creates money through fractional reserve banking.
The document provides an overview of capital markets and securities analysis. It discusses the key participants in securities markets like regulators, stock exchanges, brokers, and depositors. It also outlines the different components of capital markets like equity markets, debt markets, and derivatives markets. The document then examines the primary and secondary markets, describing how new securities are issued in the primary market and then traded in the secondary market. It also discusses various valuation techniques for equities like balance sheet methods, discounted cash flow models, and relative valuation approaches. Overall, the document serves as an introduction to capital markets and securities analysis.
This document outlines key concepts related to money, including its definition, evolution, functions, and motives for demand. It discusses how money evolved from bartering systems and commodity money to today's forms, serving important functions as a medium of exchange, store of value, and unit of account. Money offers benefits like making transactions more efficient and allowing specialization. It also outlines the transaction, precautionary, and speculative motives for holding cash.
This document contains information about various financial concepts such as money, markets, banking, and monetary policy. It defines money and describes its functions. It also defines different types of markets including money markets, capital markets, primary markets, secondary markets, and over-the-counter markets. Additionally, it discusses financial institutions and their role in the economy, central banks and monetary policy, and the functions and balance sheet of banks.
Money & banking notes for students http://www.imran.xyzImran Hussain Khan
The document discusses the qualities of good money and forms/types of money. It begins by defining money and discussing its functions, including as a medium of exchange, standard of value, and role in economic activities. It then discusses the forms/types of money, including metallic money (coins), paper money, bank money (checks, bills, drafts), legal tender money, plastic money, and near money. Finally, it outlines the qualities of a good money material, such as general acceptability, recognizability, being economical, elasticity, easy to melt and shape, portability, and homogeneity.
Money, banking, and financial institutionssajal islam
The document discusses several key concepts related to money and banking:
1. It defines money as having three main functions: medium of exchange, unit of account, and store of value.
2. It explains the different measures of money supply (M1, M2, M3) and what types of assets are included in each measure.
3. It discusses what gives money its value, including acceptability, being declared legal tender, and maintaining relative scarcity through central bank management of the supply.
This document provides an overview of money and banking concepts. It discusses the characteristics of money, the functions of money, and components of the money supply. It also describes the US financial system including financial institutions like commercial banks and the Federal Reserve System. The role of the Fed in controlling the money supply and conducting monetary policy is explained. Finally, the document discusses changing banking technologies and the roles of international banking organizations.
This document provides an overview of money and banking topics including:
The functions of money as a medium of exchange, measure of value, and method of storing wealth. It defines different measures of the money supply from M1 to M3. It also discusses monetary standards, financial institutions like commercial banks, and the role of the Federal Reserve System in the US.
This presentation introduces money and the financial system. It defines key components of the financial system including financial instruments, financial markets, financial institutions, and central banks. It then outlines the five core principles of money and banking: 1) Time has value, 2) Risk requires compensation, 3) Information is the basis for decisions, 4) Markets determine prices and allocate resources, and 5) Stability improves welfare. Each principle is briefly described.
This document defines money and discusses its functions and evolution. It notes that money acts as a medium of exchange, store of value, and unit of account. Originally barter and commodities were used, but money developed to solve difficulties with barter. Coins and paper money later replaced commodities as money. Modern money includes coins, paper notes, and checkable deposits. Central banks control money supply and commercial banks create credit and accept deposits.
The document introduces the topics of money, banking, and financial markets. It will examine how financial markets like bonds, stocks, and foreign exchange work, as well as how financial institutions like banks and insurance companies operate. It will also explore the role of money in the economy, and how monetary and fiscal policy can impact inflation, interest rates, and business cycles. The document aims to study these topics through a simplified analysis of asset demand, supply and demand equilibrium, and aggregate supply and demand.
This document discusses the benefits of foreign direct investment (FDI) and some potential costs to the home country. Some key benefits mentioned include economic development, integration into the global economy, economic growth, increased trade, technology and knowledge transfer, increased competition, linkages to domestic firms, human resource development, and employment. Potential costs to the home country include adverse effects on home manufacturers due to increased competition, adverse effects on the balance of payments, and risks to national sovereignty from influence of international companies.
The document discusses interest rates and bond yields. It covers two main theories of how interest rates are determined: the loanable funds theory and liquidity preference theory. The loanable funds theory states that interest rates are determined by the supply and demand of loanable funds in the market. The liquidity preference theory argues that interest rates are determined by the supply of money and demand to hold money. The document also discusses how various economic factors can influence interest rate movements. It defines bond yields and the yield to maturity calculation.
This document contains answers to 4 questions regarding international financial management. It defines the balance of payments and distinguishes between current account and capital account convertibility. It explains two-way and three-way arbitrage opportunities in currency exchange markets. It also provides an example of calculating a 3-month forward exchange rate and discusses various capital budgeting methods used by multinational corporations such as discounted cash flow analysis, adjusted present value approach, and others.
Capital refers to money used to set up a company. A loan is money borrowed from banks that must be repaid with interest. Shares or equities are certificates representing ownership of a company, and shareholders are people who invest in a company's shares. Debts are money owed that must be repaid to other businesses or people.
This document discusses risk management in banks. It outlines the major types of risks banks face: credit risk, market risk, and operational risk. Credit risk is the potential that a bank borrower fails to meet obligations and can take the form of outright default or deterioration in credit quality. Market risk includes liquidity risk, interest rate risk, foreign exchange risk, and country risk due to fluctuations in market values. Operational risk is the risk of loss from inadequate internal processes or systems. The Basel Accords provide capital adequacy guidelines for banks to manage unexpected losses from risks based on their risk profiles. Risk management in banks involves identifying, measuring, monitoring, and controlling various risks to ensure sufficient capital levels are maintained.
This chapter discusses money, banking, and central banking. It will cover the functions of money, how banks facilitate financial intermediation, and the role of the Federal Reserve System in the US financial system. The chapter outlines that it will define what money is, explain why banks exist, describe the basic structure of the Federal Reserve, and discuss the major functions of the Federal Reserve.
We were hired by a further education college in London to manage their social media presence and help attract more students. To do this, we examined how current students, parents, and prospects engage online. We created profiles on Twitter, Facebook, and blogs to share positive stories and interactive content from students and teachers. This helped position the college as modern and approachable. After the first month, open days saw a 30% increase in attendance. Web traffic tripled and message reach grew significantly. Importantly, all enrollment spots for the upcoming year were filled, with at least one student enrolling directly from the website. The college has successfully built an online community.
The Krono fluid head and tripod kits are designed for professional video use. The fluid head has adjustable drag for smooth panning and tilting, and can balance payloads from 1-7 kg. It comes with either an aluminum or carbon fiber tripod kit. The tripods extend from 0.6 to 1.62 meters and can securely hold the fluid head and camera. Both the fluid head and tripod kits provide professional features at an affordable price.
Money and Banking introduction slides pptOsama Yousaf
This document discusses money and banking concepts. It defines money as anything generally accepted in exchange for goods and services, and identifies four key functions of money: medium of exchange, unit of account, store of value, and standard of deferred payment. It also discusses the money supply, functions of banks and other financial institutions, international banking, and how the banking system creates money through fractional reserve banking.
The document provides an overview of capital markets and securities analysis. It discusses the key participants in securities markets like regulators, stock exchanges, brokers, and depositors. It also outlines the different components of capital markets like equity markets, debt markets, and derivatives markets. The document then examines the primary and secondary markets, describing how new securities are issued in the primary market and then traded in the secondary market. It also discusses various valuation techniques for equities like balance sheet methods, discounted cash flow models, and relative valuation approaches. Overall, the document serves as an introduction to capital markets and securities analysis.
This document outlines key concepts related to money, including its definition, evolution, functions, and motives for demand. It discusses how money evolved from bartering systems and commodity money to today's forms, serving important functions as a medium of exchange, store of value, and unit of account. Money offers benefits like making transactions more efficient and allowing specialization. It also outlines the transaction, precautionary, and speculative motives for holding cash.
This document contains information about various financial concepts such as money, markets, banking, and monetary policy. It defines money and describes its functions. It also defines different types of markets including money markets, capital markets, primary markets, secondary markets, and over-the-counter markets. Additionally, it discusses financial institutions and their role in the economy, central banks and monetary policy, and the functions and balance sheet of banks.
Money & banking notes for students http://www.imran.xyzImran Hussain Khan
The document discusses the qualities of good money and forms/types of money. It begins by defining money and discussing its functions, including as a medium of exchange, standard of value, and role in economic activities. It then discusses the forms/types of money, including metallic money (coins), paper money, bank money (checks, bills, drafts), legal tender money, plastic money, and near money. Finally, it outlines the qualities of a good money material, such as general acceptability, recognizability, being economical, elasticity, easy to melt and shape, portability, and homogeneity.
Money, banking, and financial institutionssajal islam
The document discusses several key concepts related to money and banking:
1. It defines money as having three main functions: medium of exchange, unit of account, and store of value.
2. It explains the different measures of money supply (M1, M2, M3) and what types of assets are included in each measure.
3. It discusses what gives money its value, including acceptability, being declared legal tender, and maintaining relative scarcity through central bank management of the supply.
This document provides an overview of money and banking concepts. It discusses the characteristics of money, the functions of money, and components of the money supply. It also describes the US financial system including financial institutions like commercial banks and the Federal Reserve System. The role of the Fed in controlling the money supply and conducting monetary policy is explained. Finally, the document discusses changing banking technologies and the roles of international banking organizations.
This document provides an overview of money and banking topics including:
The functions of money as a medium of exchange, measure of value, and method of storing wealth. It defines different measures of the money supply from M1 to M3. It also discusses monetary standards, financial institutions like commercial banks, and the role of the Federal Reserve System in the US.
This presentation introduces money and the financial system. It defines key components of the financial system including financial instruments, financial markets, financial institutions, and central banks. It then outlines the five core principles of money and banking: 1) Time has value, 2) Risk requires compensation, 3) Information is the basis for decisions, 4) Markets determine prices and allocate resources, and 5) Stability improves welfare. Each principle is briefly described.
This document defines money and discusses its functions and evolution. It notes that money acts as a medium of exchange, store of value, and unit of account. Originally barter and commodities were used, but money developed to solve difficulties with barter. Coins and paper money later replaced commodities as money. Modern money includes coins, paper notes, and checkable deposits. Central banks control money supply and commercial banks create credit and accept deposits.
The document introduces the topics of money, banking, and financial markets. It will examine how financial markets like bonds, stocks, and foreign exchange work, as well as how financial institutions like banks and insurance companies operate. It will also explore the role of money in the economy, and how monetary and fiscal policy can impact inflation, interest rates, and business cycles. The document aims to study these topics through a simplified analysis of asset demand, supply and demand equilibrium, and aggregate supply and demand.
This document discusses the benefits of foreign direct investment (FDI) and some potential costs to the home country. Some key benefits mentioned include economic development, integration into the global economy, economic growth, increased trade, technology and knowledge transfer, increased competition, linkages to domestic firms, human resource development, and employment. Potential costs to the home country include adverse effects on home manufacturers due to increased competition, adverse effects on the balance of payments, and risks to national sovereignty from influence of international companies.
The document discusses interest rates and bond yields. It covers two main theories of how interest rates are determined: the loanable funds theory and liquidity preference theory. The loanable funds theory states that interest rates are determined by the supply and demand of loanable funds in the market. The liquidity preference theory argues that interest rates are determined by the supply of money and demand to hold money. The document also discusses how various economic factors can influence interest rate movements. It defines bond yields and the yield to maturity calculation.
This document contains answers to 4 questions regarding international financial management. It defines the balance of payments and distinguishes between current account and capital account convertibility. It explains two-way and three-way arbitrage opportunities in currency exchange markets. It also provides an example of calculating a 3-month forward exchange rate and discusses various capital budgeting methods used by multinational corporations such as discounted cash flow analysis, adjusted present value approach, and others.
Capital refers to money used to set up a company. A loan is money borrowed from banks that must be repaid with interest. Shares or equities are certificates representing ownership of a company, and shareholders are people who invest in a company's shares. Debts are money owed that must be repaid to other businesses or people.
This document discusses risk management in banks. It outlines the major types of risks banks face: credit risk, market risk, and operational risk. Credit risk is the potential that a bank borrower fails to meet obligations and can take the form of outright default or deterioration in credit quality. Market risk includes liquidity risk, interest rate risk, foreign exchange risk, and country risk due to fluctuations in market values. Operational risk is the risk of loss from inadequate internal processes or systems. The Basel Accords provide capital adequacy guidelines for banks to manage unexpected losses from risks based on their risk profiles. Risk management in banks involves identifying, measuring, monitoring, and controlling various risks to ensure sufficient capital levels are maintained.
This chapter discusses money, banking, and central banking. It will cover the functions of money, how banks facilitate financial intermediation, and the role of the Federal Reserve System in the US financial system. The chapter outlines that it will define what money is, explain why banks exist, describe the basic structure of the Federal Reserve, and discuss the major functions of the Federal Reserve.
We were hired by a further education college in London to manage their social media presence and help attract more students. To do this, we examined how current students, parents, and prospects engage online. We created profiles on Twitter, Facebook, and blogs to share positive stories and interactive content from students and teachers. This helped position the college as modern and approachable. After the first month, open days saw a 30% increase in attendance. Web traffic tripled and message reach grew significantly. Importantly, all enrollment spots for the upcoming year were filled, with at least one student enrolling directly from the website. The college has successfully built an online community.
The Krono fluid head and tripod kits are designed for professional video use. The fluid head has adjustable drag for smooth panning and tilting, and can balance payloads from 1-7 kg. It comes with either an aluminum or carbon fiber tripod kit. The tripods extend from 0.6 to 1.62 meters and can securely hold the fluid head and camera. Both the fluid head and tripod kits provide professional features at an affordable price.
Digestacure is a product created by Pristine Nutraceutical in 1997 to address the root cause of autoimmune conditions. It has a 95% success rate after 4 months of use in eliminating the underlying causes of autoimmunity. The product and company information can be found by contacting Pristine Nutraceutical at their Florida address or phone number.
Een lege plek in de stad opnieuw waarde geven. Dat is Kraaijvangers streven met de bouw van het nieuwe stadhuis van Almelo. Het vakblad 'Stedenbouw' publiceerde een uitgebreid artikel over het ontwerp. Het stadhuis staat aan een waterboulevard en is omringd door groen. De transparante plint begeleidt de route van de binnenstad naar het station.
The document is an instruction manual for the DAC-7L, an analog to SD-SDI converter. It provides warnings and precautions, lists included items, describes key features such as video and audio inputs/outputs, and provides usage examples and specifications. The manual explains how to safely set up and operate the DAC-7L to convert analog video and embed audio into SD-SDI for transmission over coaxial cable.
This document provides an overview of money and monetary policy. It defines money, describes its key functions such as a medium of exchange and store of value. It discusses components of the money supply, the demand and supply of money, and methods that central banks use to influence the money supply such as adjusting interest rates or reserve requirements. The document also covers the quantity theory of money, the relationship between money supply and inflation, and how monetary policy can promote economic growth.
This document provides information about a student's assignment submission for a course on Financial Markets and Institutions. It includes the student's details, assignment details such as course code, submission date, and signature. It also includes sections for the tutor to fill out including date of receiving assignment, marks obtained, comments, and date of returning the assignment with the tutor's signature. The assignment questions ask about the importance of financial markets, components of the financial system, roles of the central bank, and functions of money.
State or Market: Mystery of Money-RevealedAsad Zaman
{writeup/Video: http://bit.ly/azGian01A} There is an age-old controversy regarding money. Free market proponents believe that money emerges naturally to facilitate exchange among private parties. State Theorist hold that money is a creation of the state, which acquires value by force of law. Giannini resolves this controversy by showing that both state and market are necessary aspects of money.
Application of Mathematics in Financial Management.pdfWendy Hager
This document summarizes an article that discusses the application of mathematics in financial management. It introduces key concepts in calculus like constants, variables, functions, limits, derivatives, and integrals. It then discusses the time value of money, which includes concepts like present value, future value, interest rates, cash flows, and discounted cash flows. The document provides examples of how these mathematical concepts can be applied to problems involving investments, loans, mortgages, and other financial management scenarios.
Financilization and Macro-Liquidity Risk: Post Keynesian Financial Fragility ...pkconference
This document discusses financialization and macro-liquidity risk in China. It first reviews theories of macro liquidity and definitions of liquidity. It then discusses how money, credit, and liquidity are related in China's financial system. It analyzes how financialization has produced macro liquidity risk through increased complexity and leverage. The document studies methods to measure liquidity fluctuations in China's monetary market, including an empirical analysis using overnight interest rate data to examine macro liquidity risk. It concludes with recommendations for monetary and macroprudential policies to manage liquidity risk.
This document provides an overview of money and banking concepts. It begins with a discussion of barter economies and how money emerged to overcome shortcomings of barter. It then covers qualities and types of money, as well as the functions of money. The document also discusses demand and supply of money, the structure and functions of commercial banks, types of financial instruments, and provides an overview of Sri Lanka's financial system.
This document contains the syllabus and lecture slides for a course titled "Business Economics-II" taught by Professor Gunjan D Sidhu.
The syllabus covers the following topics: introduction to macroeconomic data and theory, money, inflation and monetary policy, constituents of fiscal policy, and open economy theory and issues of international trade.
The lecture slides provide details on the topics of money supply, determinants of money supply, demand for money (classical and Keynesian approaches), and the quantity theory of money (cash transaction and cash balance approaches). Equations, diagrams and examples are used to explain various economic concepts related to money and monetary policy. Criticisms of different theories are also discussed.
The Central Bank of Nigeria (CBN) has been active in the inauguration of policies and schemes to foster the
implementation of the cashless policy in Nigeria. However the current transition to cashless economy raises a lot
of concerns with no substantial evidence yet to justify its implementation. This study was carried out in order to
appraise the implementation of the cashless policy since its introduction into the Nigerian financial system in
2012 and also to examine the persistent challenges facing its implementation. In view of the above stated
objective, primary data were collected with the aid of the questionnaire, which was randomly administered to 120
respondents ranging from First Bank, Zenith Bank and United Bank for Africa. The banks were selected based on
their total assets and the information collected covered the activities of the CBN and that of these banks towards
implementation of the cashless policy from 2012 till date.The data collected were presented and analyzed with the
aid of the Statistical Package for Social Sciences (SPSS) using descriptive statistics and one-sample t-test. The
results led to the conclusion that despite the need to operate cashless transactions dominating the modern
Nigerian economy, the cashless policy will have the desired impact only if a lot is done to ensure the
implementation of an effective cashless system.
Money originated from barter systems and metals and now each country has its own currency to facilitate transactions. Money has static functions like being a medium of exchange and unit of account, and dynamic functions like determining economic trends and consumption. Money is classified based on physical form, acceptability, money of account versus money proper, and types including commodity, fiat, credit, and digital. A country's money supply includes currencies and various deposits. The Reserve Bank of India uses credit control methods like quantitative and qualitative tools to monitor money supply and support economic development and stability.
Money and near money ( money and banking)vidhi jain
The document discusses money and near money. It defines money as anything that is generally acceptable as a means of exchange, measure of value, and store of value. There are three types of money: metallic, paper, and credit money. Near money refers to assets that have high liquidity and can be converted to money, such as bills of exchange, bonds, debentures, and shares. Near money differs from money in that it is not directly used in transactions and must be converted first. The degree of liquidity, or ease of conversion to cash, determines how near an asset is to being money. A monetary economy uses money as a medium of exchange, whereas a barter economy exchanges goods directly without money.
This document discusses several topics related to money, including:
1. It defines money supply and its determinants, and explains that money supply is composed of currency with the public and demand deposits with the public.
2. It lists factors that can increase money supply such as expansionary monetary policy through open market purchases or decreasing reserve requirements.
3. It discusses problems with implementing monetary policy in Bangladesh, including the existence of non-monetized sectors, excess non-banking financial institutions, and unorganized financial markets.
The document provides an overview of several topics in economics and finance through a series of lecture summaries:
1. It discusses business cycles, markets, financial institutions, and the various types of markets.
2. It then covers the flow of funds between different entities, the role of financial intermediaries, and foreign markets.
3. Several lectures focus on interest rates, present value calculations, determinants of interest rate levels, and the bond market.
4. Additional topics include monetary policy, money markets, mortgages, stock markets, foreign exchange, and derivatives.
This document discusses financial literacy and provides an overview of a financial literacy module. It defines financial literacy and explains why it is important. The module aims to help learners of all ages understand basic financial concepts like time value of money, risks, and fund management. It covers topics like what money is, the functions and characteristics of money, different types of money including currency, and virtual currency. The module includes practical scenarios and worksheets to help learners assess their knowledge.
Money was not used in early history as exchanges were done through bartering. Definitions of money include anything widely accepted for payments or that acts as a medium of exchange, store of value, and unit of account. Money serves four main functions: medium of exchange, store of value, unit of account, and deferred payment. The money supply is the total amount of money available in an economy and is composed of currency and demand deposits. It is determined by the monetary base and money multiplier. Money supply measurements include M0, M1, M2, M3, and M4. Inflation is a sustained increase in the general price level and can be caused by an increase in the money supply, decrease in goods supply
Bba 2 be ii u 2.2 demand and supplyofmoneyRai University
This document discusses the concepts of money and inflation. It defines money, explores its functions and determinants of money supply. Money supply is measured using various approaches like M0, M1, M2, M3, and M4. The document also examines the demand for money based on the transaction motive, precautionary motive, and speculative motive in Keynes' liquidity preference theory. It discusses the causes of inflation including increases in money supply, decreases in goods supply, changes in demand for money and goods. Inflation is calculated using the wholesale price index and consumer price index. The main types of inflation are defined as demand-pull and cost-push inflation.
This document defines money and discusses its functions and determinants of money supply. It defines money as anything widely accepted as payment or that acts as a medium of exchange, store of value, and unit of account. Money serves four main functions: medium of exchange, unit of account, store of value, and deferred payment. The money supply is determined by the monetary base (cash and reserves) and the money multiplier, and includes different components like currency, demand deposits, savings deposits, and time deposits. The velocity of circulation and liquidity preferences also impact the money supply. The demand for money stems from its use in transactions, as a precautionary asset, and for speculative purposes.
This document provides an overview of key concepts related to money, financial markets, and personal finance. It defines different types of money like commodity money, fiat money, and representative money. It also discusses functions of money, characteristics of money, problems with barter systems, and sources of money's value. The document examines monetary aggregates like M1 and M2. Other topics covered include liquidity, differences between credit cards and debit cards, roles of financial intermediaries and markets, and risks associated with saving and lending like default, liquidity, and inflation risk.
The document discusses central banks and monetary policy. It outlines the tasks of central banks, which include issuing currency, implementing monetary policy, and maintaining price stability. It also discusses why central bank independence is important for achieving price stability and avoiding political interference. The key instruments of monetary policy that central banks use are reserve requirements, open market operations, lending, and managing exchange rates. The Egyptian case study highlights that the Central Bank of Egypt's primary objective is price stability according to its Monetary Policy Objective Law.
The document discusses central banks and monetary policy. It outlines the tasks of central banks, which include issuing currency, supervising banks, defining and implementing monetary policy, and maintaining foreign exchange reserves. It also discusses the objectives of central bank policy as maintaining price stability. Central bank independence is important to avoid political influence over monetary policy decisions. Instruments of monetary policy used by central banks include reserve requirements, open market operations, lending, and managing exchange rates.
The document discusses central banks and monetary policy. It outlines the key tasks of central banks, which include issuing currency, implementing monetary policy, and maintaining price stability. Central bank independence is important for achieving price stability and low inflation. Central banks have various monetary policy instruments at their disposal, including reserve requirements, open market operations, and interest rates. The document then discusses these topics specifically regarding the Central Bank of Egypt, including its monetary policy objectives, interest rate decisions made by its Monetary Policy Committee, and its measures of inflation.
This document discusses the IS-LM model and how it can be used to analyze the effects of monetary and fiscal policy. It explains that monetary policy works by shifting the LM curve, changing interest rates and aggregate demand. Fiscal policy works by shifting the IS curve directly or indirectly through interest rates. In the long run, neither monetary nor fiscal policy can affect output levels, as prices will adjust to the "natural rate of output."
This document provides an overview of the quantity theory of money. It discusses the history of the theory as outlined by Irving Fisher in 1911. Fisher examined the link between the money supply (M), price level (P), and aggregate output or income (Y). This relationship is captured in the equation of exchange: M x V = P x Y, where V is the velocity of money, or how quickly money circulates in the economy. The document then explains that according to the quantity theory, changes in the money supply will only affect the price level as long as velocity and output remain constant in the short run. Finally, it provides graphs showing how velocity has changed over time for different monetary aggregates in Egypt.
This document discusses the IS-LM model and how it can be used to analyze the effects of monetary and fiscal policy. It explains that monetary policy works by shifting the LM curve, changing interest rates and aggregate demand. Fiscal policy works by shifting the IS curve, changing government spending/taxes and aggregate demand. In the long run, neither policy can affect output levels, as prices will adjust to the "natural rate of output."
This document discusses the IS-LM model and how it can be used to analyze the effects of monetary and fiscal policy. It explains that monetary policy works by shifting the LM curve, changing interest rates and aggregate demand. Fiscal policy works by shifting the IS curve, changing government spending/taxes and aggregate demand. In the long run, neither policy can affect output levels, as prices will adjust to the "natural rate of output."
The document discusses central banks and monetary policy. It outlines the key tasks of central banks, which include issuing currency, implementing monetary policy, and maintaining price stability. Central bank independence is important for achieving price stability and low inflation. Central banks have various monetary policy instruments at their disposal, including reserve requirements, open market operations, and interest rates. The document then discusses these topics specifically regarding the Central Bank of Egypt, including its monetary policy objectives, interest rate decisions made by its Monetary Policy Committee, and its measures of inflation.
The document summarizes the IS-LM model, which examines macroeconomic equilibrium where aggregate output equals aggregate demand. It discusses:
1) The IS curve, which shows the relationship between equilibrium output and interest rates based on investment spending and net exports.
2) The LM curve, which connects points where money demand equals money supply, showing the interest rate needed for equilibrium at each output level.
3) How the intersection of the IS and LM curves determines equilibrium in both the goods market and money market simultaneously, with output and interest rate satisfying both markets.
Keynes and Friedman had differing views on the demand for money. Keynes believed demand depended on transactions, precautionary, and speculative motives related to income and interest rates. Friedman saw demand as stable, depending on permanent income and expected returns of money versus assets. While Keynes saw fluctuating velocity, Friedman's modern quantity theory viewed money as the primary driver of spending with predictable velocity.
This document provides an overview of the quantity theory of money. It discusses the history of the theory as outlined by Irving Fisher in 1911. Fisher examined the link between the money supply (M), price level (P), and aggregate output or income (Y). This relationship is captured in the equation of exchange: M × V = P × Y, where V is the velocity of money, or how quickly money circulates in the economy. The document then explains that according to the quantity theory, changes in the money supply will only affect the price level as long as velocity and output remain constant in the short run. Finally, it provides graphs showing how velocity has changed over time for different monetary aggregates in Egypt.
Keynes and Friedman had differing views on the demand for money. Keynes believed demand depended on transactions, precautionary, and speculative motives related to income and interest rates. Friedman saw demand as stable, depending on permanent income and expected returns of money versus assets. While Keynes saw fluctuating velocity, Friedman's modern quantity theory viewed money as the primary driver of spending with predictable velocity.
This document provides an overview of the quantity theory of money. It discusses the history of the theory as outlined by Irving Fisher in 1911. Fisher examined the link between the money supply (M), price level (P), and aggregate output or income (Y). This relationship is captured in the equation of exchange: M x V = P x Y, where V is the velocity of money, or how quickly money circulates in the economy. The document then explains that according to the quantity theory, changes in the money supply will only affect the price level as long as velocity and output remain constant in the short run. Finally, it provides graphs showing how velocity has changed over time for different monetary aggregates in Egypt.
This document provides an overview of the quantity theory of money. It discusses the history of the theory as outlined by Irving Fisher in 1911. Fisher examined the link between the money supply (M), price level (P), and aggregate output or income (Y). This relationship is captured in the equation of exchange: M x V = P x Y, where V is the velocity of money, or how quickly money circulates in the economy. The document then explains that according to the quantity theory, changes in the money supply will only affect the price level as long as velocity and output remain constant in the short run. Finally, it provides graphs showing how velocity has changed over time for different monetary aggregates in Egypt.
The document discusses:
1. Definitions of money and its key functions as a medium of exchange, unit of account, and store of value.
2. The evolution of payment systems from commodity money to electronic payments.
3. How monetary aggregates like M0, M1, and M2 are used to measure money supply.
4. Details about Egypt's reserve money, counterpart assets, and net foreign assets and claims on government and banks.
The document discusses the definition and functions of money, including its roles as a medium of exchange, unit of account, and store of value. It outlines the evolution of payment systems from commodity money to modern electronic payments. It also addresses how central banks measure monetary aggregates and discusses the specific case of measuring money in Egypt.
The document is an introduction to a course on money and banking taught by Professor Chahir Zaki at Cairo University in 2012. It outlines the topics to be covered in the course, including financial markets, banking, and money. The introduction explains that the course will examine how financial markets and institutions work and the role of money in the economy. It provides an overview of the course structure and topics to be discussed.
The document is an introduction to a course on money and banking taught by Professor Chahir Zaki at Cairo University in 2012. It outlines the topics to be covered in the course, including financial markets, banking, and money. The introduction explains that the course will examine how financial markets and institutions work and the role of money in the economy. It provides an overview of the course structure and topics to be discussed.
The document discusses central banks and monetary policy. It outlines the key tasks of central banks, which include issuing currency, implementing monetary policy, and maintaining price stability. Central bank independence is important for achieving price stability as it shields monetary policy from political pressures. Central banks use various monetary policy instruments like reserve requirements, open market operations, and interest rates to influence money supply and inflation. The document also provides details on Egypt's central bank, including its monetary policy objectives, interest rate decisions made by the monetary policy committee, and inflation measures.
This document discusses the IS-LM model and how it can be used to analyze the effects of monetary and fiscal policy. It explains that monetary policy works by shifting the LM curve, changing interest rates and aggregate demand. Fiscal policy works by shifting the IS curve, changing government spending/taxes and aggregate demand. In the long run, neither policy can affect output levels, as prices will adjust to the "natural rate of output."
The document summarizes the IS-LM model, which examines macroeconomic equilibrium where aggregate output equals aggregate demand. It discusses:
1) The IS curve, which shows the relationship between equilibrium output and interest rates based on investment spending and net exports.
2) The LM curve, which connects points where money demand equals money supply based on the relationship between income, interest rates, and transactions.
3) How the intersection of the IS and LM curves determines equilibrium in both the goods market and money market, with output equal to demand at a particular interest rate.
Keynes and Friedman had differing views on the demand for money. Keynes believed demand depended on transactions, precautionary, and speculative motives related to income and interest rates. Friedman saw demand as stable, depending on permanent income and expected returns of money versus assets. While Keynes saw fluctuating velocity, Friedman's modern quantity theory viewed money as the primary driver of spending with predictable velocity.
University of North Carolina at Charlotte degree offer diploma Transcripttscdzuip
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A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
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Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
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How Does CRISIL Evaluate Lenders in India for Credit RatingsShaheen Kumar
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OJP data from firms like Vicinity Jobs have emerged as a complement to traditional sources of labour demand data, such as the Job Vacancy and Wages Survey (JVWS). Ibrahim Abuallail, PhD Candidate, University of Ottawa, presented research relating to bias in OJPs and a proposed approach to effectively adjust OJP data to complement existing official data (such as from the JVWS) and improve the measurement of labour demand.
In a tight labour market, job-seekers gain bargaining power and leverage it into greater job quality—at least, that’s the conventional wisdom.
Michael, LMIC Economist, presented findings that reveal a weakened relationship between labour market tightness and job quality indicators following the pandemic. Labour market tightness coincided with growth in real wages for only a portion of workers: those in low-wage jobs requiring little education. Several factors—including labour market composition, worker and employer behaviour, and labour market practices—have contributed to the absence of worker benefits. These will be investigated further in future work.
Economic Risk Factor Update: June 2024 [SlideShare]Commonwealth
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For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
1. Money, Banking and Financial Markets
Money
Chahir Zaki
FEPS, Cairo University
Second Semester, 2012
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 1 / 25
2. 1 Definition of Money
2 Functions of Money
3 Evolution of the Payment Systems
4 How to Measure Monetary Aggregates?
5 The Case of Egypt
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 2 / 25
3. Outline
1 Definition of Money
2 Functions of Money
3 Evolution of the Payment Systems
4 How to Measure Monetary Aggregates?
5 The Case of Egypt
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 3 / 25
4. Definition of Money
Money is what is being accepted in payment for goods and services and in
payment for debt.
Money vs. currency: Currency is only cash issued by the central bank.
Currency is too narrow a concept for money as other assets can be
used for payment too.
Money versus wealth: Wealth all the collection of pieces of property
that serve to store value. Wealth includes many assets that cannot be
used to make payments and is thus too broad a concept for money.
Money vs. income: Income is a flow of earnings per unit of time, e.g.
salary per month or interest per year. Money, however, is an asset or
a stock the amount of which needs to be measured at a point in time.
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 4 / 25
5. Outline
1 Definition of Money
2 Functions of Money
3 Evolution of the Payment Systems
4 How to Measure Monetary Aggregates?
5 The Case of Egypt
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 5 / 25
6. Means of transaction/ medium of exchange
In a barter economy goods are exchanged without using money:
The precondition for this is the “double coincidence of wants” of
transaction partners.
Looking for a suitable transaction partner is time consuming;
The transaction costs are high;
The number of transactions low.
In an economy with a low number of transactions the division of labor
is not well advanced which means that resources are not allocated
efficiently and economic growth is low.
Using money as a medium of exchange:
separates the transaction of good A for good B into 2 independent
transactions good A for money and money for good B.
The need of the double coincidence of wants is eliminated
Transaction costs decrease.
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 6 / 25
7. Means of transaction/ medium of exchange
Characteristics of a commodity to serve as a medium of exchange:
It must be standardized;
It must be widely accepted;
It must be divisible;
It must be easy to carry;
It must not deteriorate quickly.
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 7 / 25
8. Unit of account
Money is the num´raire in which all prices in the economy are
e
expressed.
Using a single num´raire enhances transparency and reduces
e
information costs. In the absence of a single num´raire each good
e
would have many prices denominated in different units of accounts.
Example: Assume an economy with 4 goods, A, B, C, and D, but no
money. What is the price of each individual good?
Good A does not have 1 price but 3 relative prices expressed in units of
good B, units of good C or units of good D.
Good B has 2 “new” prices in units of good C or in units of good D.
The third price is just the inverse of the relative price of A measured in
units of B.
Good C has 1 “new” price in units of good D. The other prices are
inverse relative prices of A and B.
Good D has no “new” price. All prices of good D can be determined as
inverse relative prices of A, B, or C.
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 8 / 25
9. Unit of account
This economy with 4 goods has 6 prices. The same economy using
money would need only 4 prices expressed in money.
More generally a barter economy with N goods needs N(N − 1)/2
relative prices whereas an economy with N goods using money as a
units of account needs only N prices
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 9 / 25
10. Store of value
Money is a repository of purchasing power over time. Most people do
not wish to spend all their income at the same point in time when
they earn it.
Money competes with other assets to store value. These other assets
include deposits, financial securities, real estate etc.
Compared to money those assets usually pay the owner a positive
interest rate whereas the interest rate of money is 0.
Why then do people wish to store value in the form of money?
Money is the most liquid asset that can be used for purchasing goods
and services and pay debt.
Liquidity is highly desirable. Illiquid assets involve transaction costs
when they are converted into money.
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 10 / 25
11. Store of value
How well money stores value depends on the rate of inflation.
When there is hyperinflation (more than 50% inflation per month)
money does not store value at all.
People do not accept money for transactions anymore and currency
ceases to fulfil the functions of money.
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 11 / 25
12. Outline
1 Definition of Money
2 Functions of Money
3 Evolution of the Payment Systems
4 How to Measure Monetary Aggregates?
5 The Case of Egypt
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 12 / 25
13. Evolution of the Payment Systems
The payments system is the method of conducting transactions in the
economy.
At the early stage of evolution commodity money (gold, silver) was
used for transactions. Problems: High transaction (transport) costs;
growth rate of money supply limited by the pace of extraction of
those precious metals.
At the next stage of evolution was fiat money (in latin “let it be
done”, as such money is established by government as legal tender).
Fiat money is accepted only if there is trust in the issuing authority.
Problems: Fiat money can be easily stolen; transport cost are still
high.
A further development involves the use of checks (instruction for a
bank transfer). Larger amounts can be transferred by means of a
check bringing down transport costs. Loss from theft is reduced.
Problems: Time to bring a check from 1 place to another and to
process a check
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 13 / 25
14. Evolution of the Payment Systems
Electronic payment is the next step in the evolution of the payment
system. This saves transaction cost significantly; many payments
become real-time transactions. Problem: Sensitive to attacks to
computer systems.
As a further step the development of e-money (money that exists only
in electronic form), smart cards (cards with a restorable payment
chip) or electronic cash (used on the internet to make transactions)
can be seen.
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 14 / 25
15. Outline
1 Definition of Money
2 Functions of Money
3 Evolution of the Payment Systems
4 How to Measure Monetary Aggregates?
5 The Case of Egypt
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 15 / 25
16. How to Measure Monetary Aggregates?
Measuring money is a problem because what is money is defined by
peoples behavior.
What is being accepted for payments may change over time; the
proper measure of money would need to reflect this.
Money is measured in monetary aggregates that include different
types of assets characterized by a particularly high level of liquidity.
The central bank of a country defines the monetary aggregates. The
definition varies between countries as people’s behavior differs.
It is important to measure money because money supply is
systematically related to the inflation rate which is an important
target variable of central bank policy.
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 16 / 25
17. How to Measure Monetary Aggregates? The Egyptian
Case
Reserve Money (MO): Composed of money in circulation outside the
CBE and local currency deposits of banks with the CBE. It is
considered the basis of money in its broader definitions and is also
known as the monetary base or high-powered money.
Money Supply (M1): Composed of money in circulation outside the
banking system, i.e. with the public, and non-government demand
deposits in local currency minus the balances of cheques and drafts
under collection, with all the banking system units
Domestic Liquidity (M2): Composed of money supply (M1) or what
is known as the current means of payment, and quasi-money
(comprising time and savings deposits in local currency and foreign
currency deposits of residents other than government).
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 17 / 25
18. Outline
1 Definition of Money
2 Functions of Money
3 Evolution of the Payment Systems
4 How to Measure Monetary Aggregates?
5 The Case of Egypt
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 18 / 25
19. The Case of EgyptReserve Money and Counterpart Assets*
1-
( LE mn )
2006 2007 2008 2009 2010 2010
End of
June June June June June Sept. Oct.
Reserve Money (M0) 116050 134126 169911 175104 203071 216655 210432
Currency in circulation outside the CBE 78604 92174 111412 126268 144253 153079 153037
Banks' deposits in local currency with the CBE 37446 41952 58499 48836 58818 63576 57395
Counterpart Assets of Reserve Money 116050 134126 169911 175104 203071 216655 210432
xx
Net Foreign Assets** 61302 95372 180333 171732 190234 191648 193724
Net Domestic Assets 54748 38754 -10422 3372 12837 25007 16708
++
Net claims on government (A+B-C) 114055 117254 81872 68613 80611 109835 107088
XX
A - Securities 164761 166724 123123 121709 121533 130597 130597
B - Credit facilities 7047 25468 36574 25190 28754 51931 50877
+++
C - Deposits 57753 74938 77825 78286 69676 72693 74386
Net claims on banks 1018 59512 77581 334 29010 56622 55317
Net balancing items -60325 -138012 -169875 -65575 -96784 -141450 -145697
X xx
Unclassified assets and liabilities (net) 34623 31902 12979 17296 4725 -6824 -8421
Open market operations -94948 -169914 -182854 -82871 -101509 -134626 -137276
* Derived from the CBE's balance sheet.
+ Provisional.
Chahir Zaki (FEPS, Cairopublic economic authorities and theBanking and Financial Markets
++ Including University) Money, National Investment Bank. Second Semester, 2012 19 / 25
25. References
Mishkin, chapter 2.
The lectures of Prof. Heiko Fritz.
Akerlof (1970).
The CBE, Monthly Report, June 2011.
Chahir Zaki (FEPS, Cairo University) Money, Banking and Financial Markets Second Semester, 2012 25 / 25