MONETARY ECONOMICS

MONETARY ECONOMICS
This can be regarded as a branch of economics that studies the relationship of money to general economic activities. It is concerned with the development of monetary theory and monetary policy.
MONETARY THEORY
This concerned with how changes in money supply affects general economic activity.
MONETARY POLICY
This refers to the deliberate action of the government designed to manipulate money supply and the availability of credit in order to achieve some set goals which include.

1. The attainment of a high rate of or full employment
2. The attainment of price stability
3. The attainment of a rapid and sustainable economic growth
4. The attainment of balance of payment equilibrium
5. The achievement of exchange rate stability
   WHAT IS MONEY
   This is anything which is by law and custom generally acceptable as a medium of exchange and also a means of settling other financial obligation.
   FUNCTIONS OF MONEY
6. Money serves as a medium of exchange
7. Money serves as a store of value
8. Money serves as a measure of value(unit of value)
9. Means of standard of deferred payments
   QUALITIES OF MONEY
10. Generally acceptable
11. Portability
12. Homogeneity (uniformity)
13. Relative scarcity
14. Divisibility.

TO BE CONTINUED