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Thread: MGT411 GDB 01 Spring April 2011 Date:11 to 12-04-2011

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    34 MGT411 GDB 01 Spring April 2011 Date:11 to 12-04-2011

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    Semester “Spring 2011”
    “Money & Banking MGT(411)”
    This is to inform that Graded Discussion Board (GDB)
    will be opened according to the following schedule
    Schedule
    Opening Date and Time
    April 11, 2011 At 12:01 A.M. (Mid-Night)
    Closing Date and Time
    April 13 , 2011 At 11:59 P.M. (Mid-Night)
    Topic/Area for Discussion
    “Monetary Aggregate ”
    Note: The discussion question will be from the area/topic mentioned above. So start learning about the topic now.
    Guidelines for Preparation:
    1. For acquiring the relevant knowledge, do not rely only on handouts but watch the course video lectures, which can be downloaded for free from , and also use Youtube other reference books.
    Important Instructions:
    1. The GDB will remain open for 72 hours 2. The GDB will open and close at above specified date and time. Please note that nograce day and extra time will be given for posting comments on GDB. 2. Use the font style “Times New Roman” and font size “12”. 3. Your answer should be relevant to the topic i.e. clear and concise. 4. Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course. 5.Books, websites and other reading material may be consulted before posting your comments but copying or reproducing the text from books, websites and other reading materials is strictly prohibited. Such comments will be marked as Zero (0). 6. You should post your answer on the Graded Discussion Board (GDB), not on the Moderated Discussion Board (MDB). Both will run parallel to each other during the time specified above. Therefore, due care will be needed. 7. Obnoxious or ignoble answer should be strictly avoided. 8. You cannot participate in the discussion after the due date. 9. Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of the GDB is over. 10.For planning your semester activities in an organized manner, you are advised to view schedule of upcoming Assignments, Quizzes and GDBs in the overview tab of the course website on VU-LMS





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    What is the main characteristic that distinguish the different money aggregate definitions?
    ANS
    Liquidity
    b)
    Which money aggregate definition is mostly used in economic decision around the world?
    ANS:
    M2
    c)
    Justify answer given against part-b.
    (provide only one reason)
    Ans:
    M2 is the strong relation between economic growth and interest rate.M2 is a key economic indicator used to forecast inflation.

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