Economics Questions and Answers

if the demand for a foreign currency exceeds its supply, the exchange rate will increase rate will increase. This will cause the local currency to suffer. because more of the local currency will be used to exchange for less of the foreign currency.

One popular method of controlling inflation is through a contractionary monetary policy. The goal of a contractionary policy is to reduce the money supply within an economy by decreasing bond prices and increasing interest rates.

Demand deposit; is a deposit of money that can be withdrawn without prior notice, e.g. in a current account.  A demand deposit is money that you deposit into a bank account from which you can withdraw on demand, at any time, without any advance notice to the bank.

In financial markets, a share is a unit used as mutual funds, limited partnerships, and real estate investment trusts. The owner of shares in the corporation/company is a shareholder of the corporation. A share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder.

An industry; economic activity concerned with the processing of raw materials and manufacture of goods in factories.