- published: 24 Nov 2015
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In economics, float is duplicate money present in the banking system during the time between a deposit being made in the recipient's account and the money being deducted from the sender's account. It can be used as investable asset, but makes up the smallest part of the money supply. Float affects the amount of currency available to trade and countries can manipulate the worth of their currency by restricting or expanding the amount of float available to trade.
"Float is money in the banking system that is counted twice, for a brief time, because of delays in processing checks", as defined by the Federal Reserve Bank of New York. It is most obvious in the time delay between a cheque being written and the funds to cover that cheque being deducted from the payer's account. Once the payee or recipient of a cheque deposits it in a bank account, the bank provisionally credits the account credits and thus increases the payee's account in demand deposit, assuming that the payer's bank will ultimately send the funds to cover the cheque. Until the payer's bank actually sends the funds, both payer and payee have the "same" money in both of their accounts. Once the payee's bank notifies the payer's bank by presenting the cheques, the "duplicate" funds will be removed from the payer's account, and the cheques will be considered to have "cleared" the bank.
Float may refer to:
In economics, the money supply or money stock, is the total amount of monetary assets available in an economy at a specific time. There are several ways to define "money," but standard measures usually include currency in circulation and demand deposits (depositors' easily accessed assets on the books of financial institutions).
Money supply data are recorded and published, usually by the government or the central bank of the country. Public and private sector analysts have long monitored changes in money supply because of its effects on the price level, inflation, the exchange rate and the business cycle.
That relation between money and prices is historically associated with the quantity theory of money. There is strong empirical evidence of a direct relation between money-supply growth and long-term price inflation, at least for rapid increases in the amount of money in the economy. For example, a country such as Zimbabwe which saw extremely rapid increases in its money supply also saw extremely rapid increases in prices (hyperinflation). This is one reason for the reliance on monetary policy as a means of controlling inflation.
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts in a particular country or socio-economic context, or is easily converted to such a form. The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, sometimes, a standard of deferred payment. Any item or verifiable record that fulfills these functions can be considered money.
Money is historically an emergent market phenomenon establishing a commodity money, but nearly all contemporary money systems are based on fiat money. Fiat money, like any check or note of debt, is without use value as a physical commodity. It derives its value by being declared by a government to be legal tender; that is, it must be accepted as a form of payment within the boundaries of the country, for "all debts, public and private". Such laws in practice cause fiat money to acquire the value of any of the goods and services that it may be traded for within the nation that issues it.
Supply may refer to:
In economics, float is duplicate money present in the banking system during the time between a deposit being made in the recipient's account and the money being deducted from the sender's account. It can be used as investable asset, but makes up the smallest part of the money supply. Float affects the amount of currency available to trade and countries can manipulate the worth of their currency by restricting or expanding the amount of float available to trade. This video is targeted to blind users. Attribution: Article text available under CC-BY-SA Creative Commons image source in video
Float it or fix it? Mr. Clifford expalins the difference between floating and fixed exchange rates and how countries peg the value of their currency to another currency. Make sure to watch this video first: https://www.youtube.com/watch?v=9DVYVfI81R8
Egypt will float its currency in a move that is expected to see it fall by almost 50% against the dollar. The price is expected to see one US dollar buying 13 Egyptian pounds, up from the nine Egyptian pounds the central bank was trying to keep it at. The country's central bank said the move was one of a list of reforms designed to strengthen confidence in the economy. Egypt's main stock index jumped by more than 8% on Thursday. The central bank has also increased interest rates by 3 percentage points to 14.75%. The move is a key requirement of the International Monetary Fund (IMF), from which Egypt is asking for a $12bn loan over three years. Hardship Although the liberalisation should help the country to strengthen its economy, it will make life harder for Egyptians and the cost of all i...
Charles Biderman's research business clients include many of the top hedge funds. Since 2011 Charles has turned his research insights into several retail oriented Exchange Traded Funds including the Morningstar Five-Star rated TrimTabs Float Shrink ETF, TTFS.
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Egypt tried to draw a line under a deep economic crisis Thursday by allowing its currency to float freely. The move saw the Egyptian pound crash 48% against the U.S. dollar, but should mean the country can now access a huge bailout from the International Monetary Fund. "The flexible exchange rate regime... will improve Egypt's external competitiveness, support exports and tourism and attract foreign investment," IMF Mission Chief for Egypt, Chris Jarvis, said in a statement. "All of this will help foster growth, job creation and stronger external position for the country." Egypt's central bank said the decision to float the currency was taken "to quell any distortions in the domestic foreign currency market... and allow market demand and supply dynamics to work effectively." According to c...
In economics, float is duplicate money present in the banking system during the time between a deposit being made in the recipient's account and the money being deducted from the sender's account. It can be used as investable asset, but makes up the smallest part of the money supply. Float affects the amount of currency available to trade and countries can manipulate the worth of their currency by restricting or expanding the amount of float available to trade. This video is targeted to blind users. Attribution: Article text available under CC-BY-SA Creative Commons image source in video
Warren Mosler talking about the difference between bank-created money and government created money. In our floating exchange rate system, the textbook explanation of the money multiplier does not apply. Instead, loans create deposits, and the Central Bank must supply any necessary reserves after the fact in order to be able to hit their interest rate target. See the whole video here: https://www.youtube.com/watch?v=ba8XdDqZ-Jg Like Deficit Owls on Facebook: https://www.facebook.com/DeficitOwls/
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For more news and videos visit ☛ http://english.ntdtv.com Follow us on Twitter ☛ http://twitter.com/NTDTelevision Add us on Facebook ☛ http://facebook.com/NTDTelevision It looks like more people in China are choosing to hold on to their cash—or maybe invest in real estate. For the third month in a row the Chinese regime's central bank has recorded a drop in the money supply growth rate. That means there's less cash floating around. That's good for lowering inflation, but could be bad for industry and business. In China, the money supply growth rate has been on the decline for three straight months. The Chinese regime's central bank announced its findings on Monday. It sparked speculation as to whether this is a positive or negative trend. The decline in the money supply growt...