Money & Banking Assignment Example | Topics and Well Written Essays - 500 words

Money & Banking - Assignment Example al interest rates do not stimulate consumers and lowering the interest rates to 0% do not translate to reduced commercial bank lending rates (Krugman 1). In this case, the demand for money remains perfectly elastic as monetary policies by the central bank fail to arrest the situation. In this situation, reducing the inflation rate too close to 0 % leads to deflation (Krugman 1). Even if the central bank maintains the nominal interest rates are zero, the eminent deflation will raise the real interest rates to significant levels. Increasing money supply in this case derives no economic effect since interest rates cannot fall further. Indeed, in a â€Å"Money Trap† situation monetary injections into the economy by the central bank do not reduce the interest rates depicting the ineffectiveness of monetary policies. A â€Å"Money Trap† situation relates to a condition where any monetary policy to reduce the interest rates during economic recession is futile and creates a recurring crisis that involves consumers, commercial banks, and the central bank. The â€Å"Money Trap† situation manifests in Europe where efforts to rescue the euro from the economic crush led to looming deflation and reduced economic growth (Krugman 1). Central banks regulate money supply by buying or selling government bonds. The buying of government bonds by the central bank reduces short-term interest rates and enhances money supply by enabling commercial banks to access additional capital that increases lending and liquidity. Quantitative easing refers to unconventional monetary policies initiated by the central bank to buy government bonds and other relevant securities with the intention of lowering interest rates and enhancing money supply in the economy (BBC 1). Quantitative easing does not entail printing more money and is only applicable when short-term interest rates are at or approaching 0 %. The US Federal Reserve initiated a $4.5tn bond-buying Programme in December 2008 to drive the

Cell phone should use it on class room Essay Example | Topics and Well Written Essays - 500 words

Cell phone should use it on class room - Essay Example Students prefer carrying their handheld cell phones in order to surf information faster as well as keep themselves updated with what is being taught in class. These pocket sized devices help students keep connected to each other as well as reduce the burden on paper because information is so readily available that students find it easier to learn and grow personally by having knowledge right on their fingertips. Teachers can mail children about their problems and home work and keep in touch with them in a better manner as well. Cell phones also have various applications which help students make notes as well as keep reminders about school and college events and happenings and thus make the entire process less tiring both mentally and physically on the child. Thus, students prefer to use their cell phones during class hours and it can actually be a boon for them. Almost every class room around the world has a no cell phone policy – and much rightly so. Cell phones have become the biggest distraction, especially in a student’s life because of the capacity of applications and tools that they contain. Students find it tough to work on essays with pen and paper and have become obsessed with copying and pasting information for their work from the internet. Thus, it is leading to retarding their learning and growth process. Not only this, but cell phones keep beeping all the time and distracting young minds from learning what is important. Since almost every student is connected to the other, an array of text messages and calls never leave them, even inside the classroom. Thus, there should be some hours a day where a student does not communicate via his cell phone, but pays attention to what is being taught. Most children take to playing games and spending their time on social networking websites with cell phones within the classroom, wasting precious learning time.