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"Changes in the value of money are important also because they may affect the level of production-(Kamerschen 14). " The total quantity of money might change for various reasons. If the quantity of money is increased when the nation is at full employment, prices rise-(Kamerschen 14). Alteration in the value of money is important also because they may affect the level of production. When prices are increasing, profits tend to be high and business is stimulated. The stimulus may be extreme, leading to the over expansion of industry followed by recession or even a general breakdown of the economic system, such as that which occurred about sixty years ago( Kamerschen 14).
"Prices then are likely to fall, and a falling price level will probably intensify a recession or depression-(Kamerschen 14). .
Bank [Bangk] noun (plural banks).
(1) An organization, normally a corporation, chartered by the state or federal government, the principal functions of which are:.
• To receive demand deposits and pay customers' checks drawn against them.
• To receive time deposits and pay interest there on.
• To discount notes, make loans, and invest in government or other securities.
• To collect checks, drafts,notes,etc.
• To issue drafts and cashiers checks.
• To certify depository checks.
• When authorized by a chartering government, it may act a fiduciary capacity (Davids 17).
(2) Business offering financial service: a business that keeps money for individuals or companies, exchanges currencies, make loans, and offers other financial services( Encarta).
In order to reap the benefits of hardship and struggle through workmanship, individuals must bank properly. Banking is essential and it serves as a stepping-stone to a better living. Through a savings account and wise investments, society can achieve vast amounts of financial security. Goals are reached properties are attained, and dreams are for filled through proper order to run a household one must bank wisely, likewise if a business is the subject.