Monetary system of Bangladesh
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Transcript of Monetary system of Bangladesh
The Presentation On
monetary system Submitted to:Ms. Fatima Satter
Submitted by:Jasfia Khanam Fama
ID:133200105Section:2
Money is the set of assets in the economy that people regularly used to bye goods and services from other people.
According to the economist definition, money includes only those few types of wealth that are regularly accepted by sellers in exchange for goods and services.
What is money?
Money has three functions in the economy: It is a Medium of Exchange that buyer gives to
seller when they purchase goods or services. It is a Unit of Account ,yardstick people used to
post prices and record debits. Money is a Store of Value, that people can used
to transfer purchasing power from the present to the future.
The Functions of money
KINDS OF MONEYTypes Definition Example
Commodity money when money takes the form of a commodity with intrinsic value, it is called commodity money
Gold coin, cigarettes etc
Fiat money money without intrinsic value is called fiat money
Paper money Taka , Dollar, Euro etc
CENTRAL BANKS TOOLS OF MONETARY CONTROL
Reserve requirements:
The central bank holds
money supply with reserve
requirements, which are
regulations on the minimum
amount of reserve that banks must hold against
deposit. The discount rate: The
interest rate that central
bank changes for the loan.
Open market operation: central
bank conduct open market
operation when it byes government bonds from or sell
government bonds to the
public.
OUTLOOK IN MEASUREMENT MONEY IN BANGLADESH Money supply (M1) also known as narrow
money includes coins and notes & other assets that are easily convertible into cash.
Broad money (M2) known as short term deposit in Banks, Long term deposit , Foreign deposit.
In 2014 M1 is increased to 13,35,151 BDT million.
Average money supply (M1)is 2,47,952.32 BDT million in March 2014.
THANK YOU