Monetary Eco BSC 2
Monetary Eco BSC 2
Monetary Eco BSC 2
ECONOMICS
BSc(Hons) in Banking and
International Finance
ACADEMIC YEAR 2008/2009
Semester 1
INTRODUCTION TO MONETARY
ECONOMICS
Marketabilty:
readily and immediately accepted as payment by many
people everywhere.
Predictability:
of the value of an asset at any unspecified moment of time
when it will be used in payment.
Divisibility:
Smallest unit in which transactions can take place determines
flexibility of the asset in exchange.
1.2 DEFINITIONS OF MONEY
IMPORTANT:
There are NOTABLE differences in the classification of the
Components of monetary aggregates in USA and EUROZONE.
CHAPTER 2:
THEORIES OF THE DEMAND FOR
MONEY