i want nigeria to ge used as a case study
2006-07-12 07:31:15 · 6 answers · asked by aliu o 1 in Social Science ➔ Economics
The growth of an economy depends on the productivity in agriculture, industry and use of the money in banks optimally for these. Investments for growth of agriculture and industry in many developing countries is totally dependent money given by banks as short and long term loans.
Generation of funds and purchasing power of individual again is purely based on money cirucltion in the particular country.
capital rationing and capital Budgeting for investments are essential for a progressive growth in economy. The rate of return is an unit for guiding in investment generally but where socio-economic benefits are to be achieved like irrigation projects with long run, this alone will not be considered.
Cost-Benefit analysis on each of the expenditures in economy will have to be done for optimal use of money. The above indicate the effects of money on growth of an economy.
VR
2006-07-23 05:57:16 · answer #1 · answered by sarayu 7 · 0⤊ 1⤋
This is a great question. I just had a question like this for my money and banking class.
By money I assume you mean money supply. There is a general consensus in economics that money is neutral. If the amount of money in an economy suddenly increased then prices would rise to reflect that increase in the money supply. Likewise the interest rate would also climb their by eliminating any gains in the REAL money supply. This is general Macroeconomics so it should apply to Nigeria as well.
If however Nigeria wanted to tie its currency to the Euro or U.S. Dollar there would probably be gains in there economy because the have essentially outsourced their currency decisions to our Fed or EU. This would lead to economic stability in Nigeria and make it more attractive to Foreign investment. Good Luck, Hope this helps.
2006-07-25 17:34:40 · answer #2 · answered by Chris h 2 · 0⤊ 0⤋
Money can impose both good and bad effects on an economy...
in short
-too much money will result in inflation
-less money can bring markets to cold
in countries like Nigeria and Afghanistan money has no exchange value.... that is bcoz there is no peace... so money dont have a definite rate.... I have heard that during the Russian war a chicken was selling at 1,00,000 Afghani currency...
2006-07-25 21:15:59 · answer #3 · answered by Ω Nookey™ 7 · 0⤊ 0⤋
Money and the creation of money through the banking system is what contributes to the growth of our economy.
2006-07-25 05:56:26 · answer #4 · answered by Anonymous · 0⤊ 0⤋
That's a pretty ambiguous question. That's like asking what the effect of numbers are in math....
2006-07-12 07:36:10 · answer #5 · answered by Anonymous · 0⤊ 0⤋
more specifics
2006-07-23 03:04:07 · answer #6 · answered by jyd9999 6 · 0⤊ 0⤋