FORMATION OF FUTURE EXPECTATION

9.0 Introduction The expectation of consumers, banks and other businesses have pronounced effects on supply and demand in financial markets. If inflationary expectations increase, the supply of and demand for loanable funds shift, and higher interest rates result. Also bank’s… Read More

CENTRAL BANKING

5.0 Introduction The Central Bank of Kenya (CBK), like most other central banks around the world, is entrusted with the responsibility of formulating and implementing monetary policy directed to achieving and maintaining low inflation as one of its two principal… Read More

MONEY AND INFLATION

4.1 Difference between inflation and economic growth Inflation refers to general rise in the level of prices in the economy while economic growth refers to increase in quantity and variety of things available for consumption and is result of the… Read More

MONEY BANKS

INTRODUCTION Money and banking are two subjects closely intertwined with our daily lives and with the very day functioning of our economy. On atypical day, you encounter money and banks in many firms like from the obvious contact made when… Read More