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MONEY MARKETS
The expression "money markets" is used to refer to the set of institutions and individuals who are engaged in the borrowing and lending of large sums of money for short periods of time (overnight to three months). The money market is not located in a place - it is rather a network of brokers, buyers and sellers.
Most money market transactions are concerned with the sale and purchase of near money assets such as bills of exchange and certificates of deposit.
Macro-economic policy objectives The major macro-economic policy objectives which the governments strive to achieve are: i. Full employment One of the main objectives
Factors influencing Exchange Rates i. Inflation: Other things being equal, a country experiencing a high rate of inflation will experience a lower demand for its goods whil
How relevent is managerial dicretion in developing countries?
Perfectly Elastic Supply Supply is said to be perfectly or infinitely elastic if the price is fixed at all levels of demand. The demand curve has been shown in the above diag
How Income level must remain constant - law of demand The law of demand operates only when income level of the buyer remains constant. If income rises when the price of commod
State about Production theory Production theory assists in determining the size of firm and level of production. It clarifies the relationship between marginal and average cost
business decision making concepts of certainity risk unertainity sources of business risk steps invoived in analysiis of risky decisions risk adjustment etc
demand definitions
DIRECT TAXES A direct tax is one where the impact and incidence of the Tax is on the same person e.g. Income Tax, death or estate duty, corporation taxes and capital gains
Disadvantages of Barter Trade It is impossible to barter unless A has what B wants, and A wants what B has. This is called double coincidence of wants and is difficult t
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