StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Money Banking and Financial Markets - Assignment Example

Comments (0) Cite this document
Summary
The following assignment entitled "Money Banking and Financial Markets" deals with different economic issues. As the author puts it, the Barter system that was earlier popular in world economy involved the exchange of goods and products for goods and products…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER97.8% of users find it useful
Money Banking and Financial Markets
Read TextPreview

Extract of sample "Money Banking and Financial Markets"

Download file to see previous pages Moreover, sub-division of goods was necessary without which the barter system could not take place (Suri, Budhiraja and Rajput 2005). Some of the other problems associated with barter system were in storing the materials that would be used for exchange. Since they were in material forms, they required enough spaces, for example, materials like rice, grains, etc. Facilities of credit could not be made available in this system. Also, difficulty was faced in transferring the goods and products from one place to another (Suri, Budhiraja and Rajput 2005). In a barter system, even when the number of commodities would be few, the exchange rates for different products and goods became burdensome (Thomas 2005). The establishment of the monetary system has improved upon the barter system owing to different reasons. The barter system has proved to be a system that caused inconvenience for the reasons mentioned above. With all its associated difficulties, the scope and scale of trade became limited with the use of a barter system. The monetary economy eliminated such difficulties. Money could be used for the purchase of products where the value of the goods could be measured and monetary payments done accordingly. In the monetary system, thus goods are exchanged with money. Researchers opined that with the monetary system replacing the barter economy, the feudalistic economic system could be converted into a more active and definite profit-making economic system. Thus the scale of trade started increasing drastically within almost a period of two decades where a large number of individuals and groups could take part in commercialization (Karimzadi 2012).
The conversion from the barter economy to the monetary economy has proved to improve the economy of the world significantly. With the new system, the economy of the world could be seen to specialize with higher levels of labor divisions as well. While in the barter system only tangible assets could be used for the economy; in the monetary economy, money could be included in the list of assets of any individual. Thus savings is possible to be achieved more in the monetary economic system, where investments can be made with the money depending on need and time. With the monetary economy in place, problems with consumption and distribution have been found to be solved, leading to better investment measures in the economy as well (Kolars et al 2013). Thus it can be said that the establishment of a monetary economy has improved upon the previous barter economy. Considering the introduction of money in the economic system of the world, all forms of money are actually incorporated. This money could be in the form of anything, any goods or products having some intrinsic value, or that which might not have any intrinsic value (Karimzadi 2012). Money does not possess any inherent value of its own. It is valuable because people are in need, while its supply is limited. Goods and products are the most essential factors in the economy. Money is essential as it allows to purchase or sell such needed goods and products. However, the value of money gets affected or influenced depending on factors like inflation that severely affects trade and business activities and people tend to react badly in such situations. Increase in supply of money leads to conditions like inflation in an economy, resulting to increase in prices of goods and products. Hence, essentially the value of money is determined by the beliefs and reactions of people who are dependent on it (Moffatt 2013). ...Download file to see next pagesRead More
Cite this document
  • APA
  • MLA
  • CHICAGO
(Money Banking and Financial Markets Assignment Example | Topics and Well Written Essays - 2000 words, n.d.)
Money Banking and Financial Markets Assignment Example | Topics and Well Written Essays - 2000 words. Retrieved from https://studentshare.org/macro-microeconomics/1483055-questions
(Money Banking and Financial Markets Assignment Example | Topics and Well Written Essays - 2000 Words)
Money Banking and Financial Markets Assignment Example | Topics and Well Written Essays - 2000 Words. https://studentshare.org/macro-microeconomics/1483055-questions.
“Money Banking and Financial Markets Assignment Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.org/macro-microeconomics/1483055-questions.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document

CHECK THESE SAMPLES OF Money Banking and Financial Markets

Service Management in Financial Services

 Measurement of quality is the result of the services provided to the customer with a prompt response based on the requirements and expectations. Quality of various processes must be managed so as to provide the customer with consistent, accurate and timely results. These results must be of high quality because various other factors pertaining to a business deal are dependent on them. Quality assures the customer of an appropriate service that includes an error-free transaction, access to accurate data pertaining to the specific schemes and services, transfer of credits, changes concerned with the membership and account details and an undoubted trust that helps in attaining the services time and again.

Financial se...
11 Pages(2750 words)Case Study

Unmarried Parents: Financial Provisions

There was no evidence before the court to suggest otherwise. I would, therefore, suggest that the child be examined by an expert in child welfare to first determine whether or not the mother is ultimately right in her assessment that the disparity in the value of her parent’s home causes her some concern. It is also important to determine via a welfare expert whether or not relocating to one of the properties suggested by the father would adversely impact upon the child’s wellbeing. If an expert agrees that relocating and the disparity in the value of the parents’ homes are not matters of concern for the child then an appeal would be likely to succeed. I would go further to predict that the father’s origina...
6 Pages(1500 words)Case Study

Money & Capital Markets

The subprime lending crisis rocked the U.S. economy in late 2006 and early 2007. Subprime lending refers to the loans which are provided to the borrowers having less than ideal credit histories. In other words, subprime lending is provided to persons who do not qualify for conventional credits or loans.

The subprime loans gave rise to inflated credit facilities, increased availability of infrastructure and more circulation of more currency in the economy. But this system also gave rise to unprecedented meltdown, liquidation of funds and resultant heavy losses of financial institutions due to non-payment of loans by the borrowers.

The main reasons for the crisis are more than one. They are the failure of the b...
10 Pages(2500 words)Assignment

Accounting & Financial Management

AWB’s operations can be categorized into areas ranging from ‘pool management services’ to ‘harvest financing’, and ‘International commodity management’. Only a company with such a big range of activities and financial outlays can become the benchmark for an equally big company like ‘Woolworth Limited’.

The performance of an entity can be better analyzed through its profitability analyses. The profitability ratios like Gross Profit ratio, Net Profit Margins, Return on assets (ROA), and Return on Equity (ROE). The calculations of such ratios are shown in the attached annexure. The Gross Profit ratio measures the percentage of each pound or dollar of sales remaining aft...
10 Pages(2500 words)Assignment

Financial Management Analysis of Rio Tinto Plc

Taking into consideration that Harmony is the sixth-largest in the world in the gold mining industry, the choice of Harmony God Mining Co. as a benchmark company is the most suitable and justifiable. Moreover, Harmony has also some investment stake in Rio Tinto, and this situation makes the company more suitable for the choice. At places, the benchmark company’s performances have been better than Rio Tinto, and thus Harmony has a competitive edge as well over Rio Tinto.

Profitability ratios like Operating Margin Ratio, Net Margin Ratio, Return on Assets (ROA), and Return on Equity (ROE) are the performance analyzer of any company. Profit Margin ratios show the relationship between profit and sales. Since profit ca...
8 Pages(2000 words)Case Study

Hongkong and Shanghai Banking Corporation

Its credit card and banking business have catapulted it to be one of the top banks in the world. The company has been doing well from 2003 until 2007 as evidenced by its financial statements. The company's financial success is explained in the following paragraphs below. The second question below discusses in clear accounting and finance terminologies the sources of the company funds. Also, the corporate governance policy of HSBC is clearly discussed in question three below.

It is said that “The starting point for my analysis of corporate resource allocation and its governance is a concern with the dynamics of enterprise and economic performance. Central to the process through which successful enterprises and econ...
17 Pages(4250 words)Case Study

Emergency Economic Stabilization Act of 2008 and How It Has Impacted the Financial Markets

Though there were objections from various quarters about the huge amounts of tax payer’s money being used in the bailout of huge corporates, the Act has been successful in moving the downturn towards a flat point and now has started slowly moving towards a recovery stage. The various programs under the EESA 2008 have played a significant role in the financial sector, housing mortgage, and banking institutions to save the institutions from complete disaster.

The Emergency Economic Stabilization Act is a huge taxpayer bailout designed to rescue the financial sector. The amount of money to be used is around $700 billion or $2000 per American citizen (Public mark up). Emergency Economic Stabilization Act of 2008 is al...
10 Pages(2500 words)Research Paper

The Effects of Financial Crisis on Supplier Selection Criteria of the Oil and Gas Industry Equipment Market

It is a difficult task to find those vendors who not only have the adequate quality and quantity of the needed raw materials but who also have an attitude of efficiency and display commitment to customer service (Sonmat, 2006). Further, organizations also strive to locate and select vendors who can be depended upon for long term relationship.

The number of factors or attributes desired from the vendor is vast, and different organizations and different industries place different importance on the attributes (Sonmat, 2006). Some of the vendor attributes may gain importance owing to the nature of the industry, for example, in the case of consumer perishables suppliers, like fresh vegetables or fruits, the buying firm would...
20 Pages(5000 words)Literature review

Relationship between Money Supply and Inflation in Saudi Arabia

Over the recent past, the effects of money supply, debt and inflation have become contentious issues for debate. Furthermore, frequent cautions concerning the risk of very large budgetary deficits aver that this would send up the upcoming state debt and capital rate as indicated by the rates (interests). As a nation, Saudi Arabia has a bi and enduring budgetary deficit over the past two decades and the government has been forced to go into the market so as to have loan access and to make up for the deficits. Given the impact of this on inflation and other economic variables, it's imperative and of great alarm for strategy architects (strategists) to understand how microeconomics has an effect on money supply, financial plan defici...
10 Pages(2500 words)Speech or Presentation

Management of Financial Institutions

The first paper is about International Banking Regulation. For banks that may want to spread across borders, the study gives an explanation of how the various policies and laws may affect its operations. The second paper in the study gives the various restrictions on the development of Pan-European bank mergers. It shows how regional liquidity shocks limit cross-border bank mergers. Thirdly, the study shows the various methods banks use in risk assessment when lending to less developed countries’ sovereign governments. It gives a topology that can help banks efficiently assess risks. An explanation of the multi-nationalization that is given in this paper comes with a model showing how applicable the profit maximization hypot...
8 Pages(2000 words)Literature review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Assignment on topic Money Banking and Financial Markets for FREE!

Contact Us