Lecture Notes on Money and Banking

Flashcards about the role of money in an economy.

Inflation impact on fixed incomes

People with limited and fixed incomes suffer the most.

Rising value of money (falling price level) consequences

Leads to losses for producers, potentially cutting down production and shrinking employment opportunities.

Inflation impact on fixed incomes

People with limited and fixed incomes suffer the most.

Rising value of money (falling price level) consequences

Leads to losses for producers, potentially cutting down production and shrinking employment opportunities.

Money's role in economic power concentration

Money can easily become a means to acquire economic power.

Erosion of social value system

Corruption, irregularities, and injustice can result from degrading values.

Black money impact on the economy

The government loses revenue due to large scale tax evasion.

Bank Definition

A financial institution that deals in loans.