EVALUATION OF THE DYNAMIC EFFECTS OF SOLE CASH HOLDING IN A DEVELOPING ECONOMY

Amount: ₦5,000.00 |

Format: Ms Word |

1-5 chapters |




CHAPTER ONE

INTRODUCTION

1.0            BACKGROUND INFORMATION OF THE SUBJECT MATTER

In a developing economy like ours, a sizeable amount of money is held in excess of  normal need. This excess money   is held is idle, because it does not produce any income, The business communities, individuals, household etc are holding a great proportion of this idle money. The involvement in the evil of boarding cash has a very serious effect on the financial institutions. The banking system ability of creating deposit money is constrained or hampered. The banks can only create small amount of deposit money, which is not enough to satisfy the teeming population seeking for loan. As a result of this, the interest rate will increase proportionately. Prices will increase while on the other hand demand will reduce increase in unemployment rate and drastic fall in national income. The industrial sector is also affected because they depend on commercial and merchant banks loan for effective production and expansion. The consequences of bank not wholly honouring loan realest has put these industries in a light corner by producing below capacity, low quality product and retrenchment as an available means of production cost cut measure or to bread even. Economic growth and development of any nation is a combination of many variable ie price, inflation deflation employment and interest rate. This variable. Money is the prime mover of economic development as a result of its relationship with economic activities. Increase in the volume of money supply in the economy will definitely bring a remarkable change in the interest rate.



This material content is developed to serve as a GUIDE for students to conduct academic research


EVALUATION OF THE DYNAMIC EFFECTS OF SOLE CASH HOLDING IN A DEVELOPING ECONOMY

NOT THE TOPIC YOU ARE LOOKING FOR?



A1Project Hub Support Team Are Always (24/7) Online To Help You With Your Project

Chat Us on WhatsApp » 09063590000

DO YOU NEED CLARIFICATION? CALL OUR HELP DESK:

  09063590000 (Country Code: +234)
 
YOU CAN REACH OUR SUPPORT TEAM VIA MAIL: [email protected]


Related Project Topics :

Choose Project Department