Whether they are high priced or low priced, mutual funds are pretty easy to buy.
In fact, in recessionary times — countries do resort to printing money, or what is known as Quantitative Easing— a term that became popular just after the recession. But, that measure is only for extreme situations, and is also considered dangerous because printing money causes inflation in an economy, and if you print too much money you can get hyper — inflation also.
So, how does printing money cause inflation? First, think of how demand of a product is related to its price. A lot more iPads will sell at Rs. If you were to draw a graph that shows the relationship between demand and price of a product it would generally look like this.
You can get fancy and call this a downward sloping demand curve. Supply and Price On the other hand a lot more suppliers will be willing to get into a business if the end product sells at a higher rate.
I remember quite a few years ago, a lot of households started planting vanilla in Kerala because vanilla rates had shot up.
So, supply will be high at higher prices, and that curve would look something like this. Feel free to tell your friends that supply curves are upwards sloping. How is the price finally fixed?
In our example this will look something like this. Demand and Supply What will happen if the government prints money and hands it out to its citizens? What happens when your income rises?
I see a great example of this with cell phone usage, as I have cousins of varying ages. Mittal can dedicate at least one cell phone tower to the one who has started earning. The eldest one has gone through the stage of SMS and short calls, and as her income rose, so did her consumption.
Your demand for a lot of things will increase since you have this extra money now, and you are rich. This will have the impact of shifting the demand curve to the right, and pushing the price of the commodity upwards. New Demand and Supply The green star indicates the price which will be fixed due to the new realities of increased notional wealth, and people demanding more because their wealth has been increased.
Just printing money will also do the same thing. This is a theoretical way to understand the consequence of printing money, and you can see a real example of this with Zimbabwe. At one point you could a buy a billion dollar Zimbabwe bank note for 15 US Dollars at E-bay, but even that was really expensive because if you were actually in Zimbabwe you could buy just 3 eggs with it!
As always, feel free to weigh in on the question, and be sure to point out any mistakes that you see. All numbers taken from here. More from my site.Oct. 2, - Oct. 12, - Click on cabin category for ship deckplan.
All prices are per person, in US Dollars (USD) unless specified otherwise, and are cash or cheque discounted. Dec 18, · How do I go about making a check in canadian dollar? Discussion in 'OT Discussion Club' started by IHAVEAQUESTION, Dec 18, His question was how to make a check in canadian dollar.
Isn't the answer just to do a quick conversion and make the check out for however much USD that CAD translates too? All we do is . Notice: Although this Canadian online stock brokerage review/comparison is dated back to Dec , the information below is updated regularly. As an update and side note, almost all discount brokerages are very competitive with low trading fees (under $10/trade).
In addition to trading fees, keep. Jul 30, · If I send a cheque to the US today, I write it against my USD account at the Bank of Montreal on Salt Spring. That cheque does not clear through the Canadian Payments Association.
It clears through the Federal Reserve system in the US, ultimately being presented for payment at BMO's offices in New York.
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Audrey Bergner. Audrey is the creator of That Backpacker and has spent the past few years crisscrossing the globe with a notebook in one hand and a camera in the other.