Monetary & Fiscal Policy: Inflation & Deflation Impacts
Understanding Restrictive Monetary Policy
Restrictive monetary policy is a strategy used by central banks to slow down economic growth. It’s termed ‘restrictive’ because the central bank limits liquidity, reducing the amount of money and credit that banks can lend. This policy lowers the money supply by making loans, credit cards, and mortgages more expensive.
The effects typically include a higher exchange rate, a stronger financial account, and a weaker current account. The primary aim is often
Read MoreCore Macroeconomic Concepts: GDP, Inflation, Unemployment
1. GDP and National Income Measurement
Limitations of GDP in Terms of Production
- The informal economy
- Illegal activities
- Domestic work
Other National Income Measures
- Gross National Income (GNI) = GDP + income that domestic citizens earn abroad – income that foreigners earn in the domestic country
- Net National Product (NNP) = GNI – depreciation of capital
Challenges in GDP Comparison
- Different population sizes: Addressed by GDP per capita
- Different currencies: Addressed by converting GDP to U.S. dollars
- Different
Essential Business Finance Terminology Explained
Key Business Finance Terms Defined
- Business Angels
- Wealthy entrepreneurs who risk their own money by investing in small to medium-sized businesses that have high growth potential.
- Capital Expenditure
- Investment spending on fixed assets such as the purchase of land and buildings.
- Debt Factoring
- A financial service whereby a factor (such as a bank) collects debts on behalf of other businesses, in return for a fee.
- External Sources of Finance
- Getting funds from outside the organization, e.g., through debt
Key Concepts in Transportation and Trade
Space Tourism: Areas with a high influx of tourists (foreign or domestic) experience the highest densities in sun and beach tourism destinations.
Trade Balance: This refers to the registration of a country’s imports and exports over a specific period. The trade balance is the difference between exports and imports, reflecting a country’s goods sold abroad versus its purchases from other countries. There are two types:
- Positive: When the value of exports exceeds the value of imports (selling more than
Fundamentals of Banking and Account Management
Understanding Basic Banking Operations
The financial system has two primary objectives:
- Capturing surplus financial resources (savings) while ensuring interest and security for recoverable deposits.
- Meeting the financial needs of borrowers by providing funds, for which interest is charged.
These activities involve different types of banking operations:
- Passive Operations: These consist of raising funds from customers (e.g., deposits) and represent the main source of funding for banks.
- Lending Operations:
Effective Merchandising and Distribution Strategies
Merchandising Strategies
Merchandising: A set of media that helps to showcase a product at the point of sale.
Key Merchandising Elements:
- Posters
- Product status displays
- Battery product presentations
- Product variety
- Decorations
- Movement and lighting
- Competitions
- Demonstrations and tastings
Distribution Functions
Transportation
Transportation: Decisions affecting the most appropriate means of transport, batch size, and frequency.
Storage
Storage: Can occur at various stores involving intermediaries in the distribution
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