“Wealth is one of the pillars of the economic system – driving economic growth, the accumulation of capital, trends in consumption, asset prices, and specific industries such as healthcare and banking. Although the very top wealth holders attract a great deal of attention, there is a shortage of reliable data and research on the overall pattern of household wealth.” Credit Suisse has been trying to fill this gap through global survey. In their latest 2012 survey they point out:
Category Archives: Money & Banking
What Can CXOs Expect Of World Economy in 2013 & Beyond?
Business leaders (CXOs) take a number of decisions – financial & non-financial – based on their expectations of the economic growth expected in their country of business and also how the world economy is likely to fare, given the interconnected world of today. For multinationals the global economic view becomes much more important.
Decisions could vary based on their views of economic growth (GDP) and its consequent impact on interest rates, exchange rates, freight rates, commodity prices and the like.
So what are the current expectations based on which leaders may want to take a view as regards their business?
Where Gold Comes From & Where It Goes?
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Source: Trustable Gold .Com
10 Worst Corporate Accounting Scandals
Source: Accounting-Degree.org
Understanding Money Supply
MONEY SUPPLY
Money is an important ingredient of the world of business and trade. Its importance is due to the fact that
- It serves as a medium of exchange – used for payment of all goods and services.
- It serves as an accounting unit – as it is used for payment of goods and services, it is also a good yardstick for comparing the value of goods and service. It therefore serves as a unit of account – a common denominator that it is used to value goods and services.
- It is used as a store of value – money when saved provides purchasing power at a later date.
Money is therefore an important cog in the wheel that makes trade and business go around and therefore has demand. It is supplied and controlled by the government of that country. Like all other goods, the value of money (as reflected in the interest rate) is determined by its supply and demand.
The money that is supplied is called fiat money – money that has little or no intrinsic value (unlike the old days when gold, silver, etc. were used, which had intrinsic value). Thus a dollar bill or a rupee note is just a piece of paper. Deposits are essentially accounting numbers. Coins may have some intrinsic value as metal, but is less than the value they depict. These get accepted by people as money because people believe that it will give them the purchasing power (to purchase goods and services) it represents, and can be used for settlement of debt. People’s belief in turn stems from the confidence in their government and their system of governance.
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