Money and Banking

04/11/2024 15 min

Listen "Money and Banking "

Episode Synopsis

In this podcast, we break down the fundamentals of money supply and demand, exploring why money is demanded, its roles as a medium of exchange, unit of account, and store of value, as well as the three main motives for holding it. We dive into how the supply of money is defined and regulated, the mechanisms through which commercial banks create money, and the central bank’s critical role in controlling money supply, setting interest rates, and acting as the lender of last resort. Tune in to understand these concepts and their impact on inflation, interest rates, and economic stability.