Did you ever imagine how difficult it would be to buy commodities without a common medium of exchange? In the modern world, one can only laugh at the idea of barter system. It would have been terribly difficult to exchange a kilo of bacon for some kilos of sugar.
Economist Fischer pondered on the importance of money as a common medium of exchange which could successfully respect the value of one good and bring costs under one single valuation system.Students of economics working on their projects should learn about the importance of money followed by its basic functions first. Taking up Economics homework help from Courseworktutors will also help them prepare their projects successfully.
The concept of different banks:
Banks safeguard public money while central banks are the apex institutions dealing with all sorts of monetary affairs of a country. Thus, while an individual can deposit his/her money with a commercial bank, it is the Central bank who issues notes/coins and delivers them to commercial and other types of banks. Economics students should know about the functions of different banks and how central banks contribute to a country’s monetary policymaking.
‘It’s all about the money’…
Money does not just store values to different goods and services but also helps impart specific values to them.
Imagine the problems arising from barter system.
It is difficult to estimate the precise rate of exchange of one good for another. Money tends to omit such problems and behaves as a common medium usable by all the citizens of a country. It can even be exchanged with other currencies depending on their relative demand/supply. For a more detailed research, students should concentrate on the classical money theories.
Our experts have found out that students tend to confuse the classical approach to money equation with the Keynesian equation of money. Classical approach defined by Fischer talks about the transaction purpose of money and combines it with national income. The Keynesian theory, however, equates money demand with its supply and shows its various facets. If the terms and their implications trouble students, they can hire our experts in economics to help with their assignments and problems.
Dealing with the chapter on money:
Irrespective of the books or journals students follow, they always need a helping hand to understand the concepts that circle around basic money theories. Students often face troubles understanding and differentiating roles that commercial and central banks play. Central banks are more like bankers to banks and they are the sole coin/note-issuing institutions. Apart from that, central banks also regulate the balance of payments accounts and mingle with the exchange rates as and when required.
Students should also focus on definite terms like reserves and deposits when studying about commercial banks and their functions. Complex terms like statutory liquidity ratio and repo rates should be learned and understood with due care. Our experts have vast experiences in helping students understand these terms and their implications.
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