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EVALUATION OF THE DYNAMIC EFFECTS OF IOLE CASH HOLDING IN A DEVELOPING ECONOMY.

EVALUATION OF THE DYNAMIC EFFECTS OF IOLE CASH HOLDING IN A DEVELOPING ECONOMY.

A CASH STUDY OF OGBETE MAIN MARKET

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THE NATURE AND CONSEQUENCES OF JUVENILE DELINQUENCY IN NIGERIA: A STUDY OF ENUGU NORTH LGA, ENUGU STATE
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ABSTRACT

 

One of the most prominent characteristics of under developed nation is the use of high proportion of cash, relative to demand deposit in business transaction. This cash relative to demand deposit has resulted to the existence of idle cash in such economics.

In an under developed country like ours, a significant percentage of money is held in form of cash a sizeable portion of this cash is kept idle, with the resultant consequence that the productive sector is denied they of such fund. This sizeable amount of cash that is not used for anything. Under the banking system ability to create deposit money, thus affecting the volume and cost of loans. The effect of these idle money has system magnified itself that it has resulted to unemployment low business investment and declining national income.

This research has been organized into five chapters with the first chapter dealing on introduction, while the second chapter centers on review of related literatures chapter three showed the method of research used. Chapter four and five develled on analysis of data test of hypotesi summary of findgs, recommendations and conclusion respectively.

CHAPTER ONE

INTERODUCTION

  • Background information of the study

    • Statement of the problem

    • Objective of study

    • Hypothesis

    • Significance of the study

    • Scope of the study

    • Limitations of the study

    • Definitions of term




REFERENCES

 

CHAPTER TWO

LITERATURE REVIEW

  • The role of money in a developing economy

    • Money and banks

    • Demand for money

    • Motives of demanding money

    • Banks functions and money creation

    • Limitations of money creation

    • Supply of money

    • Velocity of circulation

    • The concept of idle cash

    • Reason that led to a fall in idle cash

    • Effect of idle cash holding in a developing economy




 

CHAPTER THREE:

RESEARCH DESIGN / METHODOLOGY

  • Area of study

    • Source of data

    • Data collection methods

    • Questionnaire design.

    • Sample design

    • Method of data analysis

    • Method of testing hypothesis




 

CHAPTER FOUR

  • Data presentation and Analysis

    • Test of hypothesis




 

CHAPTER FIVE

SUMMARY OF FINDINGS RCOMMENDATION AND CONCLUSION

  • Summary of findings

    • Recommendation

    • Conclusion




BIBLIOGRAPHY

QUESTIONNAIRES

CHAPTER ONE

 

INTRODUCTION

  • BACKGROUND INFORMATION OF THE SUBJECT MATTER


In a developing economy like ours, a sizeable amount of money is held in excess of  normal need. This excess money   is held is idle, because it does not produce any income, The business communities, individuals, household etc are holding a great proportion of this idle money. The involvement in the evil of boarding cash has a very serious effect on the financial institutions. The banking system ability of creating deposit money is constrained or hampered. The banks can only create small amount of deposit money, which is not enough to satisfy the teeming population seeking for loan. As a result of this, the interest rate will increase proportionately. Prices will increase while on the other hand demand will reduce increase in unemployment rate and drastic fall in national income.

The industrial sector is also affected because they depend on commercial and merchant banks loan for effective production and expansion. The consequences of bank not wholly honoring loan realest has put these industries in a light corner by producing below capacity, low quality product and retrenchment as an available means of production cost cut measure or to bread even

Economic growth and development of any nation is a combination of many variable ie price, inflation deflation employment and interest rate. This variable. Money is the prime mover of economic development as a result of its relationship with economic activities. Increase in the volume of money supply in the economy will definitely bring a remarkable change in the interest rate. This effect will lead to increase investment, employment, national income and expansion of industries.

With increase in awareness and effective mobilization of idle cash held by these prime agents of the economic activities, the ability of creating deposit will be enhanced. Banks can now meet the loadable demands of the entire economy wholly

 

  • STATEMENT OF PROBLEMS


The availability of capital is the most outstanding factor to consider in assessing the workability feasibility, survival and its ability to met business expenses as and when due. Are business organizations able to finance their business activities? If not what is responsible for this? Is it the inability of banks to give enough loans.?

With the increasing number of banks every day there is the assertion that banks are not able to meet the Loanable demand of theses business organization, both small and big organization. Why have these apex institution failed to meet up to th

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