An interest rate collar is a financial derivative that limits the range of interest rates on a loan or investment to protect against risk. It involves both a cap and floor, setting an upper and lower limit on the interest rate fluctuations. By capping the maximum and flooring the minimum interest rates, it provides a… Continue reading What is an Interest Rate Collar?
Category: Money Market
What is Money in Economics?
Money in economics is a store of value, a unit of account, a standard of deferred payment and a medium of exchange that we use to purchase goods and services without the need for cumbersome bartering. It is a fundamental concept in the field of economics and plays a crucial role in the functioning of… Continue reading What is Money in Economics?
Functions of Money you may not know
Money is an integral part of our daily lives. From buying groceries to paying bills, money is essential. But have you ever wondered what the actual functions of money are? In this article, we’ll explore the functions of money and why it’s important to understand them. Functions of Money The functions of money are essential… Continue reading Functions of Money you may not know
15 Causes of Inflation in Bangladesh you need to know
Inflation is a sustained increase in the general price level of goods and services in an economy over a period of time. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation reflects a reduction in the purchasing power of money. Inflation can be caused by a variety… Continue reading 15 Causes of Inflation in Bangladesh you need to know
Instruments of Monetary Policy you need to know
Monetary policy refers to the actions taken by a central bank to control the supply of money in an economy and achieve specific economic goals. The central bank uses a variety of tools and instruments to influence the money supply and interest rates, such as open market operations, reserve requirements, and interest rate targeting. These… Continue reading Instruments of Monetary Policy you need to know
Know the Types of Monetary Policies?
There are two types of monetary policies: expansionary and contractionary. Expansionary monetary policy is when a central bank lowers interest rates in order to stimulate economic growth. Contractionary monetary policy is when a central bank raises interest rates in order to slow down inflation. There are two types of monetary policies: expansionary and contractionary. Expansionary… Continue reading Know the Types of Monetary Policies?