(A CASE STUDY OF ONITSHA BUSINESS COMMUNITY)
ABSTRACT
This research comprises adequately the roduset money in this developing process. In chapter one is the introductory aspect of idle cash holding, the mainly of idle cash holding and how it is applied in human endive avow. The practice of hoarding money will reduce the ability of the banking system to creator deposit with the consequence that bank create small amount of deposit which is usually not enough to satisfy the demand of economy.
TABLE OF CONTENTS
CHAPTER ONE
1.0Introduction 9
1.1 Objective of the Study 10
1.2Significance of the Study 10
1.3Scope of the Study 11
1.4Limitation of the Study 11
1.5Definition of Terms 12
CHAPTER TWO
2.0The role of money in the development process 15
2.1 Demand for money 17
2.2Motives for demanding money 17
2.3Recapitulation 18
2.4Functions of Bank 19
2.5Money creations as an antedate for economic development 21
2.6What limit the amount of money banks can create 21
2.7Supply of money 23
2.8Velocity of circulation 23
2.9The concept of idle money 24
2.10The demand for idle money as a determinant of idle money 24
2.11Reasons that influences a fail in demand for idle cash 25
2.12The effect of hoarding in the economy 25
CHAPTER THREE
3.0Summary of findings, Conclusion and Recommendation 26
3.1 Findings 26
3.2Conclusion 29
3.3Recommendation 30
Bibliography 31
CHAPTER ONE
1.0 INTRODUCTION
MATTER: A large amount of money is held in excuses of moral need. Cash but in this form is regarded as idle because it does not produce any income and it is not being used by the productively sector of the economy. In most developing economies like Nigeria, a earnable amount of money is held idle by the business commodities, individuals , household to the detriment of general economic growth of this country. The practice of hoarding money with reduces the ability of the banking system to create deposited with the consequence that bank create small amount of deposit which is usually not enough to satisfy the demand of economy the banks inability to honour wholly, loans requests and need of the economy (at favourable cost) as a result of idle cash holding attests the economy adversely.
An increase in money supply to the economy will generally lower interest rate which inturn will head to an increase in business investment. When the rate of the hoard is too high as is the case with Nigeria, it will have a negative impart on the economy as such money is completely lost to the economy.
1.1 OBJECTIVE OF THE STUDY
1.Finding out his cost of holding money in form of cash relative to demand deposit, to the holder in particular and this economy in general.
2.Finding out what the financial institutions have been doing with respect to mobilizing excess money for effective transmission to the productive sector or this economy.
3.Examining the extent of relationship between business men and bankers.
4.Find out the amount of currency hold in excess of nournul need.
1.2 SIGNIFICANT OF THE STUDY
The reason for the research is to determine the effects of idle cash holding in developing economy like Nigeria with reference to Onitsha business community so that, on completion of this research will
1.Contribute to the solving of liquidity and problem of banks.
2.Contribute to the solving problem of literature pm idle cash in onitsha which is particular lacking.
3.provide insight into the amount of unproductive cash held which does not contributed to the economic growth of this economy.
4.show the business to the public in a more detailed from the economic advantage of making use of the banks instead of keeping their monies in this respective home vaults.
5.Provide the government acknowledged of the effectiveness of banks activities with respect to the mobilization pf serving and reveals area of loop house that negires payging.
1.3 SCOPE OF THE STUDY
The scope of this study is limited to only Onitsha community. A very important commercial town in Anambra State. However, discussions in most
| 1 - 5 of 96 Reviews |