Introduction Inflation and economic growth are two of the most crucial macroeconomic variables that shape the performance of an economy. While economic growth indicates the rise in a country’s productive capacity and output over time, inflation refers to the persistent increase in the general price level of goods and services. The relationship between these two…
Introduction Banks are the backbone of the modern financial system and play a pivotal role in the economic development of a country. A bank is not merely a financial institution that accepts deposits and grants loans, but also an essential component of the economic structure that facilitates trade, investment, and development. It serves as a…
Introduction Interest has always been one of the most debated and fascinating concepts in economics and finance. It plays a crucial role in determining how individuals, firms, and governments make decisions regarding saving, borrowing, and investment. The statement “interest is the reward for relinquishing liquidity and is determined by the demand and supply of money”…
Introduction A central bank is the apex monetary authority in a country, responsible for controlling the supply of money, regulating credit, stabilizing prices, and maintaining economic stability. Examples include the Reserve Bank of India (RBI), the Federal Reserve (USA), the Bank of England, and the European Central Bank (ECB). Monetary fluctuations, such as inflation, deflation,…