CONTRACTIONARY POLICY: Definition: A type of policy that is used as a macroeconomic tool by the country’s central bank or finance ministry to slow down an economy. Contractionary policies are enacted by a government to reduce the money supply and ultimately the spending in a country. This is done primarily through: 1. Increasing interest rates 2. Increasing reserve requirements 3. Reducing the money supply‚ directly or indirectly This tool is used during high-growth periods of the business
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circumstances. In Japan‚ the Minister of Finance is legally authorized to conduct intervention as a means to achieve foreign exchange rate stability. In the United States‚ the Government and Federal Reserve Board (FRB); in Euro Area‚ the European Central Bank (ECB); in the United Kingdom‚ the Bank of England (BOE) operates it. General Ideas of Foreign Exchange Market Foreign Exchange Market To invest in other countries or to buy foreign products‚ firms and individuals may first need to acquire the
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GEO STRATEGIC IMPORTANCE OF PAKISTAN Geo strategic means the importance of a country or a region as by virtue of its geographical location. Geo political is defined as‚ stressing the influence of geographic factors on the state power‚ international conduct and advantages it derives from its location. Stephen Cohn describes this importance “While history has been unkind to Pakistan‚ its geography has been its greatest benefit. It has resource rich area in the north-west‚ people rich in the north-east
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less cash. If the central bank does not respond to this event‚ what will happen to the price level? Use a diagram to assist in answering this question. 2. Use the loanable funds model to explain what happens to interest rates and investment if a government moves from a balanced budget position to a budget surplus. 3. Suppose that the T-account for The Open Campus National Bank (OCNB) is as follows: Assets Reserves $100‚000 Loans 400‚000 (a) If the central bank requires to hold
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Scope of the Study: 2 Limitation of the Study: 3 Structure of the paper: 3 Chapter II CONCEPTUAL FRAMEWORK 4 Chapter III FACTORS INFLUENCING GOLD FUTURES 6 US dollar and gold price……………………………………………………………………….6 Central bank reserve policy and gold price……………………………………………………8 Demand and supply of gold and its effects in the price………………………………………11 Inflation and gold price……………………………………………………………………….15 Investment demand and gold price…………………………………………………………
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executive of the Central Bank. Powers and duties are: * To prepare the agenda for the meeting of the Monetary Board and to submit for the consideration of the Board the policies and measures which he believes are necessary in carrying out the purposes and provisions of the Central Bank Act; * To execute and administer the policies and measures approved by the Monetary Board. * To direct and supervise the operations and internal administration of the Central Bank. The Governor
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Oligarchy in Indonesia INTRODUCTION The word oligarchy originated from the Greek word oligarkhia‚ oligoi ‘few’ and arkhein ‘to rule’ which as a system refers to the politics of wealth defense by materially endowed actors. While oligarchs are actors who command and control massive concentrations of material resources that can be deployed to defend or enhance their personal wealth or exclusive social position. Oligarchs pose a problem as they are composed by extremely wealthy individuals‚ only
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commonly used method to control inflation is monetary policy of the Central Bank. Most central banks use high interest rates as the traditional way to fight or prevent inflation. Monetary measures used to control inflation include: (i) bank rate policy (ii) cash reserve ratio and (iii) open market operations. Bank rate policy is used as the main instrument of monetary control during the period of inflation. When the central bank raises the bank rate‚ it is said to have adopted a dear money
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of the central banks to supply money in an economy and therefore lower the interest rate‚ is easy to understand why the gold standard was blamed for prolonging the Great Depression during the interwar. The Bretton-Woods system The Bretton-Woods system or fixed exchange rates (1958-73) is based on the reserve currency hold by the central bank which fixes its currency exchange rate against the reserve currency by trading domestic for foreign asset when necessary. In this case the central bank
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REFLECTION PAPER An adventure can teach someone something significant about themselves‚ other people‚ or the world in general. Learning should be an adventure. One should be able to enjoy learning‚ and to have the curiosity of learning new things. The educational tour started out as an escape from school for most of us students‚ bonding with friends‚ chance to unwind and of course to learn new things and to gain knowledge at the same time that we may apply someday. On February 6‚ 2013 the BSBA
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