what is the difference between loose and tight money policies?
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What is the difference between a tight and a loose monetary policy? In a tight monetary policy, the Fed's actions reduce the money supply, and in a loose monetary policy, the Fed's actions increase the money supply.
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Savings account generally gives you the discretion to withdraw the money whenever you want, and gives you the accessibility to money. However, the same will not be observed when you open up a fixed deposit account. ... On the other hand, fixed deposit account usually offers their customers a fixed interest rate.
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If your budget is tight then term insurance is a better option as cash value insurance costs much more. Term insurance would also be suitable for a person with low income but requiring a large cover to protect his family's financial future in case of his demise.
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Unlike certificates of deposit, which charge a penalty for early withdrawals, you can close a money-market account at any time without incurring a penalty. ... A money-market account is a good place to store your emergency fund, which is money you've saved that's reserved for emergency situations only.
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The main difference between them is simple. Under a custodial scheme, the money is held by the scheme provider; under an insured scheme, the landlord can keep the money in their own bank account during the tenancy.
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The one important difference you need to remember is that when you opt for margin funding, you pay interest on the amount funded. On the contrary, when you opt for futures trading, there is no interest payable by you. Of course, you do indirectly pay interest when you opt to roll over your position to the next series.
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A Fixed Savings Account allows you to lock a specific amount of money for a period of 1 up to 12 months. To open this account, you need to deposit a minimum of Kes. 500. Upon early or premature redemption, you will forfeit all interest acquired.
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These taxation rates are lower than the income tax rate applicable on Fixed Deposits, especially in the case of investors in the higher tax bracket. Tax directly eats into returns, which is why FMPs have the edge over Bank FDs. Also for longer tenure FMPs the indexation benefit is allowed.
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“Tight” monetary policy takes the current economy, and reduces aggregate demand in order to: lower inflation, lower real output, and raise unemployment. “Loose” monetary policy increases aggregate demand in order to: raise inflation, raise real output, and lower unemployment. ... “Loose” policy heats the economy.
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A fixed exchange rate is a rate which is maintained and controlled by the central government. A Flexible exchange rate is a rate which is determined by the market force. A fixed exchange rate is controlled by an apex bank or a monetary authority. A flexible exchange rate is controlled by the demand and supply forces.
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Automatic stabilizers are limited in that they focus on managing the aggregate demand of a country. Discretionary policies can target other, specific areas of the economy. Automatic stabilizers exist prior to economic booms and busts. Discretionary policies are enacted in response to changes in the economy.
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Tight monetary policyincluding raising interest rates, or controlling the quantity of money. Disadvantages It restricts competition, Bad Impact Of Inward Looking Trade Strategy Risk Reward Strategy quality of goods and services.
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VUL policies allow you to borrow money from the insurance company, using the policy's cash value as collateral. ... When it comes time to take money out, withdrawals up to your basis come out tax-free. All others are technically loans, which are also tax-free.
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Simply put, the difference between these theories is that monetarist economics involves the control of money in the economy, while Keynesian economics involves government expenditures. ... Both of these macroeconomic theories directly impact the way lawmakers create fiscal and monetary policies.
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Some banks even refer to fixed deposits as CDs. Both CDs and fixed deposits will pay interest more than "passbook" savings accounts, where money can be withdrawn at any time. The difference between the two is that certificates of deposit are freely negotiable, while fixed deposits are not.
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The difference between the endowment plan and money back plan is that in the endowment plan one gets the sum assured and the bonus at the completion of the maturity period. Whereas in a money-back plan the policyholder gets a percentage of sum assured at regular intervals.
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The major difference between Reserves and Reserve Funds is that all earnings (i.e. interest) from the investment of Reserve Funds must be allocated to, and form part of, the Reserve Fund; while the earnings from Reserves are allocated to the operating budget as investment revenue.