The Theories of Interest Rate Determination explain how the rate of interest is decided in an economy. Different economists have given different approaches. The main theories are: 1) Classical Theory of Interest Rate Determination Propounded…
What is Money Supply? Money supply is defined as the total money in circulation within the economy during the given period of time. It is the stock variable determined by the joint behavior of the…
मुद्रा गुणक (Money Multiplier) भनेको केन्द्रीय बैंकले आपूर्ति गरेको आधार मुद्रा (High Powered Money / Reserve Money) को एक एकाइले बैंकिङ प्रणालीमार्फत कति गुणा बढी कुल मुद्रा आपूर्ति (Money Supply) सिर्जना गर्छ भन्ने मापन हो।…
Money supply is defined as the total money in circulation within the economy during the given period. It is the stock variable determined by the joint behavior of the general public, BFIs, government, and the…
1. Capital Output Ratio (COR) पुँजी उत्पादन अनुपात COR shows the relationship between capital stock and the output of the economy. It is expressed as the ratio of capital stock and output. i.e. COR =…
Capital Account Convertibility (CAC) refers to the freedom to move capital (financial assets) across a country’s borders without restrictions. This includes flows like foreign investment, loans, deposits, and the purchase/sale of financial assets. Capital Account…
Nepal’s trade has received preference at the multilateral, regional, and bilateral levels. The multilateral preference has been received as a member of the WTO, where Nepal has enjoyed the preferences and privileges as an LDC…
This theory is also known as James Tobin’s speculative money demand theory. Keynes says Assets are (cash or bonds) Tobin says Assets are (cash and bonds) This theory is an extension of the Keynesian speculative…
This theory is primarily concerned with explaining why people demand money. According to Keynes, people demand money primarily for 3 different purposes. Transaction motive (दैनिक खर्च चलाउन) Precautionary motive (भैपरी आउने खर्च टार्न) Speculative motive…