The principles of note issue are classified into two classes. One opinion says that complete conversion of notes into gold bars is known as the “Currency Principle”. The second advocates the elasticity in the supply of money according to the needs of trade and commerce, known as “Banking Principle”. These two theories are discussed below […]
What is Deflation – Methods to Control Deflation
Instead of asking about how to control deflation? Just go and explore in internet world, you will have a lot ways to control deflation. It is clear that deflation reduces the general price level which is due to decrease in output and employment. It is a set back to the rate of economic growth in […]
What are the Root Causes of Deflation
There are a number of causes of deflation, but before talking about all these causes of deflation, it is also important to talk about deflation that what is deflation? How different authors define deflation: – Deflation is gradually decreased in the prices of general products and services and known as deflation. Different authors define the […]
Discuss the Root Causes of Inflation
Today inflation has become the common problem of the world and almost every one talks about the root causes of inflation. It is clear that inflation is a matter of raising prices when the supply of goods and services is low than the demand for such items starts increasing. The increase in pricing is probably […]
Primary Functions of Commercial Banks
To know exactly what the functions of commercial banks are? Firstly we should try to understand that what commercial bank is? Commercial Banks are those institutes which deal with the money and engaged in performing the routine activities of banking business. Commercial banks are primarily established to earn profit. It deals with the funds of […]
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