Inflation is the decline of purchasing power of a given currency over time .
excuse me sir , what is inflation ?
who knows how open market measures the inflation ?
sell of securities or short terms bond. the central bank also sell short terms bond orgoverment securities & treasury bills fromindividual & institutions. decrease money supply & increaspurchasing power of individual and firm
The usual aim of open market operations is—aside from supplying commercial banks with liquidity and sometimes taking surplus liquidity from commercial banks
sir , why open market is important ?
I haven't got a clue about that sir .
I've been wondering the same thing actually .
okay today i want to teach about money & banking . But before that , i want to ask you all what the function of BNM ?
I haven't got the faintest idea .
okay class let me tell you . Functions of BNM was as government banker & financial adviser , bank for currency issue and also as keeper of international reserves