Category: Commerce

Commercial banks do not cooperate fully within the central bank A government monetary system may be reduced or increased in size and controlled tightly without deleterious effects on its performance,however monetary system contains commercial banks that are in business for Read More …

This refers to the stock of monetary items that are in circulation in an economy at a particular point in time.these items basically consists of;total currency ie notes and coins issued by central bank and the total demand deposits.the following Read More …

Demand for money refers to the tendancy or desire by an individual or general public to hold onto money instead of spending it.it is also known as liquidity preference.money can be hold by individuals in various forms and these include;currency Read More …

Medium of exchange – money is generally acceptable by everybody in exchange for goods and services.it therefore enables trade to be carried out conveniently hence reducing drawbacks of barter trade Measure of value – when commodities are valued in terms Read More …

For a commodity to perfom as money it has to have the following characteristics. Acceptability – money must be acceptable to everyone for it to be used as a medium of exchange Durability – should be able to last for Read More …

Money is any asset that is generally acceptable as a means of payment to settle transactions as well as a medium of exchange.it is anything that is generally acceptable for payment of debts.Stages in development of money Historically, the development Read More …

When establishing a business,a person must decide on form of business ownership.in making this decision,he/she will consider the following factors; The formation requirements Ease of creation of business. Flexibility(change). Expenses to start and maintain(capital needed). Legal requirements. Government control and Read More …

There are three main ways of classifying economic resources namely; Natural resources -They are also called the gifts of nature and are fixed in such by they are held in trust by the government for the citizens. They include; forest, Read More …

These are ways or means required for satisfying our want or need. These resources can either be goods, services. CHARACTERISTICS OF ECONOMIC RESOURCES. They are scarce in relationto their uses They have a monetary value. They have alternative uses. They Read More …

Trade or exchange of goods involves several difficulties, which are removed by auxiliaries (ensure smooth flow of goods from producers to the consumers) known as aids to trade.It refers to all those activities which directly or indirectly facilitates smooth exchange Read More …