Economics of Money, Banking, and Financial Markets PDF

Chapter (1) Why study Money, Banking and Financial Markets  An Introduction ______________________________ Economics of money and banking is a topic that studies how money and banks affect the economy. a medium of exchange that enables people to make...

Chapter (1) Why study Money, Banking and Financial Markets  An Introduction ______________________________ Economics of money and banking is a topic that studies how money and banks affect the economy. a medium of exchange that enables people to make transactions and defer payment. Financial institutions that connect savers and borrowers and facilitate the circulation of money in the market ❑ Money and banking influence the level of economic activity, inflation, interest rates, and financial stability. ECO212 Dr.BOSY A. FATHY Ch.1 2  Duration: 120 min Undergraduate Grade: 2 ECO212_BIS Benha University, Faculty of Commerce Obour and Benha Campus BIS Program Academic Year: 2024-2025 Chapter (1) Why study Money, Banking and Financial Markets Dr. Bosy A. Fathy Assistant Professor of Economics Faculty of Business, Benha University M.Sc. and PhD in Economics, FEPS, Cairo University Email: [email protected]. NOTE: The lecture notes must be used in conjunction with the textbook and tutorials 4 Table of contents _________________________ 01 Why study financial markets? 02 Why study financial institutions and banking? 03 Why study Money and Monetary Policy? 04 Why Study International Finance? After Studying this chapter, you will be able to: Recognize the importance of financial markets in the economy. Describe how financial intermediation and financial innovation affect banking and the economy. Identify the basic links among monetary policy, the business cycle, and economic variables. Explain the importance of exchange rates in a global economy. 5 ECO222 ECO212 Dr.BOSYDr.BOSY A. Fathy A. FATHY Ch.1 Ch.1  An Introduction ______________________________ If the central bank has raised the interest rate: Weighted Average Interest Rates * EGP Deposits EGP Loans > 1 Month 3 Months 6 Months