Get the answer of: What is Money Supply? The value (purchasing power) of money and the cost of credit (interest rates) are determined by supply and demand in much the same manner that prices are determined for such goods as wheat, books or football tickets. Money performs a number of functions. The functions of money provide us with a descriptive [...]
In this article we will discuss about the various financial assets of a commercial bank. Liquidity and Profitability: In order to be able to meet demands for cash as and when they are made a bank must not only arrange to have sufficient cash available but it must also distribute its assets in such a way that some of them [...]
The following points highlight the role of commercial banks in developing the economy. The roles are: 1. Accelerating the Rate of Savings and Capital Formation 2. Mobilisation of Resources and Granting of Adequate Credit for Development 3. Credit for the Priority Sectors 4. Involvement in Development Planning 5. Strengthening Institutional Facilities 6. Promoting Growth with Stability. Role # 1. Accelerating [...]