These statistics measure the amount of money in the economy as well as interest
ID: 1142211 • Letter: T
Question
These statistics measure the amount of money in the economy as well as interest rates and include:
Money Stock (M1, M2, and M3) [monthly]
Bank Credit at All Commercial Banks [monthly]
Consumer Credit [monthly]
Interest Rates and Bond Yields [weekly and monthly]
Stock Prices and Yields [weekly and monthly]
In one Word document, for each indicator above briefly provide:
Name of the economic indicator
What the statistic means in general terms
Type of indictor (leading, lagging or coincidental) if known
Current value and recent trends
Source of the statistic including website address
Explanation / Answer
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Answer-
What the statistic means in general terms- this statistic is an indicator of the money being present in the economy in any form be it cash or deposits with the bank. This can be used to control inflation or deflation.
Type of indictor- it is a leading indicator as this type of money supply levels determine the state of economy and whether it is inflation or deflation or something else.
Current value and recent trends- Current values - 3584502.00 USD billion. Recently the M2 has been constantly increasing compared to the August values.
What the statistic means in general terms- this can be used to define interest rates and the exchange rates among the countries and also to manage economic imbalances.
Type of indictor- it is a leading indicator as this type of bank credit will lead to change in interest rate scenario
Current value and recent trends- Current values – August-12,813.7962 USD billion. An increase of .5% over the previous months value
What the statistic means in general terms- Consumer credit represents loans from households. The loans here are used to refinance purpose of initial finance of goods for a consumer.
Type of indictor- it is a lagging indicator as this type of indicator will only form grounds of research and the data will already be resulted due to other economic factors.
Current value and recent trends- Current values – July-5.1%. This represents a steady growth in consumer credit over past months.
What the statistic means in general terms- This is the type of indicator that controls the inflations and deflation scenario in an economy, as the inflation increases the central banks may start regulating the interest rates and control the same.
Type of indictor- it is a coincidental indicator as this interest rate values are coincidental to bond market prices and demand.
Current value and recent trends- Current values – July-2-2.5% a rise of .25% over the previous months
What the statistic means in general terms- these statistics implies the growth in the domestic market and the churn or return that the investor is able to generate from them.
Type of indictor- it is a lagging indicator as change in stock market yield and index appreciation happens only at a large period of time and may not always indicate an economic downturn or upturn.
Current value and recent trends- Current values – Current yields are up at 4% more than the prior 8 months.
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