EVALUATION OF THE DYNAMIC EFFECTS OF IDLE CASH HOLDING IN A DEVELOPMENT ECONOMY

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EVALUATION OF THE DYNAMIC EFFECTS OF IDLE CASH HOLDING IN A DEVELOPMENT ECONOMY(A CASH STUDY OF OGBETE MAIN MARKET)

 

ABSTRACT: One of the most prominent characteristics of under developed nation is the use of high proportion of cash, relative to demand deposit in business transaction. This cash relative to demand deposit has resulted to the existence of idle cash in such economics. In an under developed country like ours, a significant percentage of money is held in form of cash a sizeable portion of this cash is kept idle, with the resultant consequence that the productive sector is denied they of such fund. This sizeable amount of cash that is not used for anything. Under the banking system ability to create deposit money, thus affecting the volume and cost of loans. The effect of these idle money has system magnified itself that it has resulted to unemployment low business investment and declining national income. This research has been organized into five chapters with the first chapter dealing on introduction, while the second chapter centers on review of related literatures chapter three showed the method of research used. Chapter four and five develled on analysis of data test of hypotesi summary of findings, recommendations and conclusion respectively.

PROPOSAL: With the multifarious (many / various ) increase in the economic system money become the most acceptable means of transaction and payment of debt. The proportion of money which is not used in normal recurring transaction or is held in excess of the normal need is called “idle cash” The excess of the normal need is called “Idle cash” The continuos with drawl of money from the circular flow of income between the household individual s, firms and industries becenies so alarming and devastating; it deprive the  users the great opportunity of making any meaningful and judicious use of idle cash. In the area of research methodology primary and secondary source of data collecting  will be adopted. The primary data source  includes oral interview administration on questionnaire observation and literature review. While the secondary sources of data collection to be adopted are the use of text books, financial standards etc. There are some constraint towards this project     which I include money –which is inadequate time to combine my lectures, personal chores and project research work, protocols to be observed will surely delay this project. Inadequate libraries and materials to lay hands on. he researcher therefore wish to embark on this work to remedy some of these problems and their effects on the economy. The project work intend to highlight the pros and cons of the negative use of idle cash , constant flow of money in circulation , light interest rate and poor cross Domestic product (GDP) the research work will not only be in document for the accounts department

TABLE OF CONTENTS

CHAPTER ONE

INTRODUCTION

  1. Background information of the study
    1. Statement of the problem
    2. Objective of study
    3. Hypothesis
    4. Significance of the study
    5. Scope of the study
    6. Limitations of the study
    7. Definitions of term

REFERENCES

CHAPTER TWO

LITERATURE REVIEW

  1. The role of money in a developing economy
    1. Money and  banks
    2. Demand for money
    3. Motives of demanding money
    4. Banks functions and money creation
    5. Limitations of money creation
    6. Supply of money
    7. Velocity of circulation
    8. The concept of idle cash
    9. Reason that led to a fall in idle cash
    10. Effect of idle cash holding in a developing economy

CHAPTER THREE:

RESEARCH DESIGN / METHODOLOGY

  1. Area of study
    1. Source of data
    2. Data collection methods
    3. Questionnaire design.
    4.  Sample design
    5. Method of data analysis
    6. Method of testing hypothesis

 

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EVALUATION OF THE DYNAMIC EFFECTS OF IDLE CASH HOLDING IN A DEVELOPMENT ECONOMY(A CASH STUDY OF OGBETE MAIN MARKET)

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