Coursework Overall Review Looking Back And How I Would Recommend This Class For ECO320 – Coursework Example
work Overall Review Looking Back and How I Would Recommend This for ECO320 Taking the Money and Banking, significantly added to the little knowledge I had of finance. The information I got was quite invaluable, and it will help me make the right decisions in life. At the beginning of the course, I was able to understand what banking is all about and the needs of banks in the economy. The many functions of the banks are taking deposits, lending to the national government, giving out loans and storage of valuable property like gold and original certificate. Banks make money by giving out deposit in terms of loans at a higher interest rates than the one it allocates to the savings accounts. Banks majorly use the customer’s deposits to lend out to willing customers at a much higher price.
It was quite interesting to learn how banks make money and more so, the facts that it is more like a rotation or rather a cycle. In any country, there is a central bank that governs the way banks operate. The central bank assigns a deposit ratio under which banks must withhold in their liquid cash and that which should not be lent to the public. A discount rate enables banks to determine the kind of percentage they would use to remit loans to their clients. What caught my attention most is the understanding of how the demand and supply of money affect the interest rates in the country. Economists must have an impressive job regulating the interest rates to come up with a stable economy. Money and banking proves important because it sheds light on the financial institutions, especially the financial institutions and capital markets. For anyone planning to work in the finance field, it is important that they enroll in this course because it will make them better placed for the corporate world. Cecchetti and Schoenholtz (2011) assert that money and banking are so practical because they deal with real aspects of the society. It is quite interesting learning about things one can easily practice.
Cecchetti, S. G., & Schoenholtz, K. L. (2011). Money, banking, and financial markets. New York: McGraw-Hill/Irwin.