Stashing Your Cash: Video Analysis

Each student is to select research question related to money and banking and develop a well written paper that provides insight into the topic. The goal is to obtain a better understanding of the topic, while relating the identified topic or concept with real world scenarios.

The complexities and the uncertainties of the government spending leave consumers in a world of dubiety and lead to declines on their spending and investment. The governments need to provide simple and elegant solutions in response to the recession. The consumers need to understand these solutions which would allow them to

The consumer confidence index measures the level of optimism regarding the prospect of economic growth. These data are gathered via surveys that focus on people’s attitude towards economy by asking them to make short and long term forecasts. Although consumers’ overviews of the economy are based on past occurrences, the expectations are generally reflective of future expenditure behaviour, which is a large component of real GDP. CCI is subjective because people’s economic outlooks are generally based on variables that are partially reflective and closely related to themselves such as unemployment rate and petrol prices. Consumers’ expectations are based on the changes in these factors and they will impact upon future household consumption.

4) Briefly describe money’s function from the view of economists and write down the definition of M1 and M2.

The current weak and volatile economic conditions, particularly in the United States and Canada, have impacted consumer spending. These week economic conditions will continue to impact consumer spending and purchasing habits for the foreseeable future. Consumers’

Four reasons an adult should use a bank is for protection of money, the earnings of money, borrow money, and the electronic banking. The reason for protecting money is to understand the safety your savings account. The purpose of the savings account is to store money in the bank, this will collect interest with steady deposits. As an example why you should use a savings account is, Say your house gets robbed and you have a savings vault in your room and the burglar steals all the money in the vault. Your savings is gone. If you opened a savings account with the bank, the chance of your money being stolen are very slim. This allows the protection of your money. The second reason of why an adult should use a bank is because, of the earns of

Another alternative was putting money into livestock; however, livestock can die of diseases which causes the person lose their money. Due to this, people turned to CSAs (commitment-savings accounts). Through CSAs, once the account is opened, people can’t withdraw cash reserves until they have deposited a specific quantity of money, or just before a specific date. Nevertheless, some CSAs are disadvantageous because a majority of savers who didn’t meet the CSAs target saw their balances steadily diminish. As noticed through research, people favor more sparing CSAs. This reveals the idea that with more lenient rules, the demand for CSAs would increase if the cash reserve can be used for unanticipated crises. For example, a study that focused on Filipino migrants found that “labeling their remittance “for education”, with no further strings, boosts them by 15%.” (The

The result of the analysis indicates that saving safety and magnitude of savings of RUSACCOs members associated positively. Security means protection of against theft or other losses caused by fire or other natural causes. This implies that protection of savings from loss helps RUSACCOs members to increases saving habit and confidences on financial institution.

Monetary policy, ‘The government’s policy relating to the money supply, bank interest rates, and borrowing’ (Collin: 130), is another tool available to the government to control inflation. Figure 4 shows, that by increasing the interest rate (r), from r1 to r2, the supply of money (ms) is reduced from Q1

“The money market fulfils the borrowing and investment requirements of providers and users of short-term funds, and balances the demand for and supply of short-term funds by providing an equilibrium mechanism” (Money Market in India, 2017). It serves as a mechanism through which central bank's intervention in the

The Conference Board by Nielson produces a leading economic indicator for the US economy, The Consumer Confidence Index (CCI), is released the last Tuesday of every month (Investopedia Staff). This survey consists of five questions; two correlated to present economic conditions and three regarding future outlooks, asked to five thousand households every month. Respondents may answer the questions with three responses; positive, negative or neutral. “The Organization for Economic Cooperation and Development (OECD) considers consumer confidence a leading indicator” (Investopedia Staff). Another leading indicator regarding consumer sentiment is the Survey of Consumers conducted by The Survey Research Center at the University of

(b) Economic factors: (1) Some businesses rely on loans from banks or other financial institutions as a source of financing. Higher interest rates lead to higher total expenses for firms. (2) Consumer confidence is an economic indicator that measures overall consumer optimism about the state of the economy. Confident consumers are more likely to spend more money more than consumers who has low confidence, which means businesses are tended to

Endogenous money represents a mainstay of Post Keynesian (PK) macroeconomics. PK theory challenged monetarism’s description of the money supply process. The focus of PK endogenous money theory is the mechanics of the money supply process. PK theory is itself divided between “horizontalist” and “structuralist” approaches to the money supply. Horizontalists believe the behavior of financial institutions is unconstrained by the availability of liquidity (reserves) provided by the central bank and the supply-price of finance to banks is fixed at a price set by the central bank. The important difference is that structuralists emphasize the role of bank lending in determining the money supply.

These conclusions correspond to the claim of the quantitative theory that money is the primary determinant of nominal income. If thus the rate of money circulation does not change (here the rate need not necessarily by a constant ), then money exclusively determines changes in the price level and nominal income, so monetary policy can, through regulating the development of the individual money aggregates (M1, M2, etc.), influence macroeconomic variables and predict their development.

Due to the inflation, Malaysia government already applied different strategies to face the inflation that occurred recently. Bank Negara Malaysia controls the inflation rate by implementing the monetary policies such as influence the level of interest rate that commercial banks have to pay on their loans. Sometimes commercial banks have unexpected or urgent needs for extra funds, Bank Negara Malaysia will make a short term loan to them in such case. Acceptable collateral and a promissory note (IOU) such as government securities are given when commercial banks borrow. Bank Negara Malaysia will obstruct commercial banks to make loan from them for obtaining additional funds when the inflation