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Macro 12 TH

The document discusses several key aspects of monetary policy including inflation rate, deposit interest rate, credit interest rate, broad money growth, domestic credit to the private sector, and the exchange rate of a local currency against the US dollar.

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Ali Khaled
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19 views

Macro 12 TH

The document discusses several key aspects of monetary policy including inflation rate, deposit interest rate, credit interest rate, broad money growth, domestic credit to the private sector, and the exchange rate of a local currency against the US dollar.

Uploaded by

Ali Khaled
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Part 3 (monetary policy)

1: inflation rate (consumer price)


-inflation is an increase in the general price level of goods and services. When
there is inflation in an economy, the value of money decreases because a given
amount will buy fewer goods and services than before inflation in an economy is
often calculated by examining a basket of goods and services and comparing the
changes in the prices of that basket over time

2-Deposit interest rate


The deposit interest rate is paid by financial institutions to deposit account
holders. Deposit accounts include certificates of deposit savings accounts, and
self-directed deposit retirement accounts
3-Credit interest rate
For credit cards, the interest rates are typically stated as a yearly rate. This is
called the annual percentage rate (APR). On most cards, you can avoid paying
interest on purchases if you pay your balance in full each month by the due date

4-Broad money growth


Broad money is a category for measuring the amount of money circulating in an
economy. It is defined as the most inclusive method of calculating a given
country's money supply, and includes narrow money along with other assets that
can be easily converted into cash to buy goods and services
5- Domestic credit to private sector
refers to financial resources provided to the private sector by financial corporations, such as
through loans, purchases of no equity securities, and trade credits and other accounts
receivable, that establish a claim for repayment. For some countries these claims include credit
to public enterprises. The financial corporations include monetary authorities and deposit
money banks, as well as other financial corporations where data are available (including
corporations that do not accept transferable deposits but do incur such liabilities as time and
savings deposits). Examples of other financial corporations are finance and leasing companies,
money lenders, insurance corporations, pension funds, and foreign exchange companies credit
to private sector
6-The exchange rate of local currency against the us dollar
An exchange rate between two currencies is the rate at which one currency can
be exchanged for another. That is, the exchange rate is the price of a country’s
currency in terms of another currency.

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