Proportional Reserve System of Note Issue Explained

Proportional Reserve System
First let's understand the meaning of three words, namely:Proportion means a part, percentage or share of something regarded as a collective whole.
Reserve implies something valuable stocked up systematically or stored carefully often on a large scale at a secured location.
A System comprises a set of detailed procedures, routines, and methods that are supposed to be

Comments

Post a Comment

Popular posts from this blog

Extension and Contraction of Demand with Graph

Extension and Contraction of Demand Assuming other factors (or determinants) remain constant (don't change), the change seen in the demand due to a change in the price is called Extension and Contraction of Demand.The concept of extension and contraction of demand in economics can be studied and best understood with the help of the following graph.Image credits © Gaurav Akrani.In the above
Read more

What is Product Design? Definition Meaning

What is Product Design? Definition The definition of product design can be stated as follows."Product design is the translation of intellectual wisdom, requirements of the entrepreneurs, or needs of the consumers, etc. into a specific product."Product design is usually a creative accomplishment of adventurous and experienced professionals. Meaning of Product Design The meaning of product design
Read more

What is Fixed capital? Definition, Meaning and Examples

Definition of Fixed Capital In general, the definition of fixed capital can be stated as under.“Fixed capital is a compulsory initial investment made by the entrepreneur to start up the activities of his business.”Fixed capital is a mandatory one-time investment made at the introductory phase of a business establishment.Fixed capital is not alike working capital, which is required on a
Read more