From 1 January, the bank will accept only those cheques which conform to new standards.
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!EMILY CLIMBS by L.
M. Montgomery (Lucy Maud), Contents.
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Papers can be graded in 'n' numbers of ways and if we count all permutation and combination of grades total grades may well exceed News Corp is a network of leading companies in the worlds of diversified media, news, education, and information services.
Tandridge District Council wants to build on large areas of the Green Belt despite the fact that this is a mainly rural District with no big towns, few local jobs, and little infrastructure.
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