Readers Question: how will central bank may increase the supply of money in economy?
The money supply is the total amount of money available in the economy at a particular point in time. A narrow definition of money involves notes and coins. A broader definition includes cash plus bank and building society deposits.
Policies to Increase Money Supply
- Print Money. Central Banks can decide to print more notes and coins. This increases the money stock in a direct way.
- Reserve Ratio. Central Banks can make commercial banks keep a certain reserve ratio e.g. 5% of their deposits must be kept in cash. Higher reserves diminishes the creation of money in an economy. If Central Banks reduce minimum reserve ratios, banks can lend out more and this leads to an increase in the money supply through the money multiplier
- Purchase of Government Gilts. The Central Bank can purchase long dated government bonds from Central Banks. This increases the cash reserves of banks and lowers interest rates on gilts. In theory with greater cash reserves, banks will lend more. Also lower interest rates should encourage lending.
- Quantitative Easing. This occurs when the Central Bank electronically creates money in order to finance the purchase of bonds and securities. This should have a bigger effect on increasing the money supply than just buying bonds with existing money. Quantitative easing is often pursued during unorthodox times such as a liquidity trap and a prospect of deflation.
i wanna be a business man in future.
i wanna plan it
i aim great i hope iget there
hai firends i wanna become richest man in the world
it`s become a true when a man make to think
differently………about the future………
KARTHIKEYAN
Hi everyone first time. Hey i know its not going to be easy 4 me but i will do anything in my power to make sure i become Rich and i expect nothing less than that.Thanks for your positive attitude and you r the kind of people i wanna hang up with. Real i dnt wanna be poor at all
I am frm South Africa and i meant what i said i wanna be a business man .
One day i will also will become like these big shots
and i am going to rock that day
HI THIS ABHAY SINGH I WANT SEE MY LIFE AS A BIGGEST EARNER OF THIS WORLD BECAUSE I KNOW MY QUALITY THANKS AND HAVE NICE DAY.
I want to be one of the richest men in the world and am ready to learn how to get to the top…
I PRAY TO BE LIKE ALHAJI ALIKO DANGOTE,THE RICHEST MAN IN NIGERIA.
god will fulfil all ur deams..but whoever will b richest amongst u..plzz try 2 help those peoples who are dying b’cse of hunger,treatment basic needs of life.i will prey 4 all of u..who wants 2 b billionare…insha allah u will succeed. plzzzzzzzz…..plz……
I will like to be one of them in my life in Jesus name, it very good for one to have money in this life, but when u have the money never ever forget your God because is the controller of every thing in life, so that u can help people if u don’t forget god u will have the mined to help people because human was born with hearth of stone but when he be came born again he was giving hearth of flesh thanks stay Bless……
its really good to be rich but there are many who have not see just food to eat i really believe that if you are rich and you know really that you are rich all i have to say is this pls pls pls pls help some peopel that need help from you so thjat GOD will make you more rich and richer amd my6 pray to you all is that ALMIGHT GOD WILL GIVE YOU MORE AND MORE SO THAT YOU CAN STILL HELP PEOPEL THAT DONT HAVE THANKS
LORD, we thank thee for all the blessing that we have received, for all the great plans that you have for us LORD, the trials we face at times seem too much to bear were grateful, though for the reminders in your word that you will stay by our side and help us endure till you call us home AMEN..
FOR EVERY ONE WHO LOOK UP TO GOD THIS IS WHAT YOU WILL FIND IN YOUR LIFE
(1) You will find favor with someone you don’t expect.
(2) You will be too relevant to be ignored.
(3) You will encounter GOD and will never remain the same.
(4) The grace for completion will come on you, you shall be blessed till the blessed call you blessed.
(5) The hand that will send this message to others shall not Labour in vain.
(6) The mouth saying ”Amen” to this prayer shall laugh forever ….Amen.
Very Very soon and I say Very Very Very soon, GOD is going to do a miracle and lift you up for GOOD. Here is a test: if you love God and you’re not ashamed of Him, send this to ten people.
“It is better to trust in the Lord than to put confidence in man – Psalms 118:8”
God Loves U from
stiv-cool Regard
I waiting that some body have an extra money outher
hehe
god will help me to become one of the richest man in the world
dear friends i have a quistion what do you think if they have monny they have not any pro…. they have more then us dear onliy say to good shoud give you health if you have this you have evrything anyway dear friends well onliy ask that from these people are they have not any pro…. then they will tell you