Money Supply in Economy

Money SupplyMoney supply or money stock is defined as the total or aggregate amount of currency and liquid instruments (cash, coins, checking & savings account balances, and any other liquefiable assets) existing in a nation at a particular point of time.

The money supply statistics are important indicators of economic changes, such as inflation, general price levels, foreign exchange rate fluctuations, and the likely turn in business cycles. Therefore, they are often employed by market watchers to predict the investment and general business environment in a country. There are multiple measures of money supply that vary in the degree of liquidity, i.e. the ease with which the components can be monetized or converted into cash. Following are the five key measures:

M0 (M-Zero): The most liquid measure of an economy’s monetary resources at a point of time is called the M0 supply. This includes all the circulating cash + coins + instantly liquefiable assets with a Central Bank account. Being the smallest measure of the money supply, M0 supply is also known as narrow money.

M1 (M-One): The total amount of money within an economy that can be exchanged for goods or services is known as M1 supply. This includes cash, coins, checking or current account balance, and demand deposits (deposits that can be withdrawn on demand without requiring any prior notice or declaration). It can also be understood as M0 + checking/current accounts + demand deposits.

M2: An aggregate of the near money and the liquid assets is called M2 supply. In simplest terms, this includes M1 + the short-term deposits (also called as near money), which are easily convertible to cash + retail money market fund shares with more than 1-day maturity. This is the most commonly used variant of money supply.

M3: Emphasizing more on money as reserves or deposits, this is the broadest measure of supply and includes less liquid instruments, as well. We can say that M3 = M2 + the long-term deposits or financial instruments. Therefore, M3 also pertains to the financial institutions.

M4: This reflects the level of economic activity in a nation at a given point in time. M4 supply comprises of M3 + all other types of bank deposits.

As evident, the degree of liquidity decreases with the broadening of the supply measurement. However, it is important to note that not all countries follow the same definitions of types of money supply. In addition, there can be some additional measures and the classification in broad/narrow money may also vary.

Swati is a qualified Indian Chartered Accountant (CPA) and a Post Graduate in Commerce with 12 years of experience. She is the founder of Eurion Constellation, a consultancy and research firm catering to businesses in U.S., Europe and India. The research services have a global reach with focus on equity research, analysis, modeling, valuations and financial writing. Please feel free to get in touch for any business requirements. Visit


Money Comes From Anywhere

Money AnywhereThe old axiom, ‘Money does not grow on trees,’ has merit. Yet, your limiting belief, about where money comes from is the crux of the matter. We were indoctrinated and believe that money comes from limited sources. Such as:

• A nine to five job with benefits and perks.
• A second part-time job with no benefits or perks.
• A sales position with commission, benefits, perks, and an annual bonus.
• A home based business – multilevel marketing, a small service or product business.
• Winning the lottery
• Winning a raffle and selling the item for cash.
• Winning Publishers Clearing House prize
• Selling items on eBay, Craigslist or garage sale
• Receiving an inheritance
• Finding money – on the street, in a pocket, a drawer, in sofa/chair cushion
• Someone returning borrowed money
• And the list goes on depending on how you believe money comes to you.

All of the ways you believe money comes to you were taught, modeled and scripted by age ten. They are now your beliefs because you simply believed them without question.

What if you ‘let go,’ of your limiting beliefs about where money comes from? If you opened yourself to the possibility that ‘Money can come from anywhere,’ albeit not from the trees, what would you experience? However, money can come from the trees if you raised and sold trees. But, that is not my point.

My point is, if you consciously choose to believe that, ‘Money can come from anywhere,’ that is where money will come to you – from anywhere.

I can hear your thoughts. What? How can that be? Money coming from anywhere is ridiculous. Saying money can come from anywhere is the same as saying, money grows on trees. My question to you is this: Since you believe money comes from a nine to five job, how did you come to know that? You came to know that, because, you experienced it in your family, read about or saw it on TV and in movies.

Would it be OK if I told you there are many more ways money can come to you? If the answer is, ‘yes,’ read on. If the answer is, ‘no,’ stop reading now.

The first step in knowing that money comes from anywhere, is to ‘Let go,’ of limiting beliefs about how money comes to you. Let go by repeating this statement – Money Comes To Me From Anywhere. Repeat this statement three times upon waking, three times at lunch time and three times before going to sleep. Repeat this process for 90 days.

During the 90 days you are choosing to believe the statement, even though you do not have concrete proof. Therefore, if you hear yourself saying a negative rebuttal, such as: Yeah right! I’ll believe it when I see the money, etc. STOP the limiting belief immediately and repeat the affirmation three times. Then, state, “I choose to believe that money comes to me from anywhere.”

The key to receiving something is to be ‘Open to receiving.’ If you are cynical or a disbeliever in the back of your mind, you will negate the affirmation. You need to be fully open to receive.

Throughout the day say the following affirmations:

• “I am open to accepting money from anywhere.”
• “I choose to believe money will come to me from anywhere.”
• “I deserve to receive money from anywhere.”
• “I release all limiting beliefs about how money will come to me.”
• “Money comes to me in miraculous and from unexpected sources.”
• “I am grateful that money comes to me in large amounts from anywhere.”

Some people carry a copy of their affirmations in a pocket, purse or briefcase, so it is readily accessible to remind yourself you are open to receive money from anywhere.

The possibilities are endless and ever expanding and you deserve to receive the money you desire from anywhere. Remember the Universe will deliver what you believe, deserve, desire and expect.

Expect large sums of money to come from anywhere.

Dorothy M. Neddermeyer, PhD, Metaphysician – Certified Hypnosis Practitioner, Author and Speaker. Dr. Dorothy facilitates clearing blocks, fears and limiting beliefs. You can live the life you deisre. She brings awareness to concepts not typically obvious to one’s thoughts and feelings.

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How to Make Money From Your WordPress Website

How To Make MoneyThe internet provides numerous possibilities when it comes to making money. As long as you know the right platform to use, you can generate sustainable income from the web. WordPress is one of the most volatile platform to use in making money online. If you are wondering how to make money on WordPress website or blog, then you can use this article as a guide to help you choose on what would work best for you.

1. Do affiliate marketing:
You can have a product linking on your website such that when someone clicks on it and buys it, you earn a commission from the transaction. You simply need to sign up to become an affiliate marketer of the product you want, and ensure there is enough traffic on your site to attract buyers.

2. Become a product endorser:
When you have gathered a good audience base on your website, you can use your statistics to convince marketers to use you as a product endorser. You can do reviews, adverts and other forms of marketing for them. Write articles about different products and get paid for it. The trick is to ensure that you have a good online following.

3. Sell advertizing space on your website:
Most people in business are always looking for ways in which they can use online platform to advertise their products. It is one of the easiest ways of how to make money on WordPress. Create a charge sheet and sell space to those who need to use your website as a medium for advertisements.

4. Get innovative:
When you notice that your website has become popular, then it is time for you to get creative. Come up with an ebook, a software, or anything you can sell. In short, take advantage of the audience you have gathered to market something of your own. You can even create events, where you teach other people ways in which they can become successful bloggers.

5. Create a premium subscription for members:
Getting people to pay to read your content is another bright idea of how to make money on WordPress. If people visiting your website like the content that you produce, then they will not mind paying for it. Just ensure that you are giving them their money’s worth so that they do not feel shortchanged once they have paid the subscription fees.

There are many people who have already established several ways of how to make money online. Always remember that the most important thing is for you to create a strong online community so that your presence is noticed.

Wade Byrd has a passion for helping people in home based businesses who want to get better results and make more money by understanding how to make money on WordPress. For more information on Wade and how he can help you make more money, visit his web site at


Top 10 Myths About Making Money Online

Money OnlineDo you know anything about making money online? I mean anything that is tested and proven, not just seen elsewhere. I’ve heard and read hundreds of myths about making money online. A lot of people, especially newbies, read them, take them as granted and let them ruin their online business – by either not starting it or by walking the wrong way and sticking to it no matter how long it doesn’t work.

Well, I’m working online since eight years and I have tested a lot of things. I know for sure that the following 10 claims are very, very wrong. If you’ve been exposed to them or worse – you believe in them – now is the time to realize how wrong they are.

1. You need loads of traffic.
If your site(s) receive a lot of traffic this can really make it easy to monetize through advertising. But quality is more important than quantity. Sites with less but quality visitors can achieve much higher profits by selling own or affiliate products than the pennies one file-hosting site earns from advertising for example. I have a small site with around 1,000 visitors monthly which earns a lot more than a site with 5,000 unique visitors monthly.

2. You can achieve good results submitting your site to thousands of directories.
Directories don’t bring traffic and have no meaningful effect on your search engine rankings. Almost all the site directories are worthless and submitting to them is loss of time and/or money. There are some directories like DMOZ and some niche directories which can bring some benefit if you get listed. But don’t spend too much time even on them – using the directories as promotional method can never make your business.

3. Your products must have the lowest prices.
In fact it’s quite the opposite. If your products are very cheap it’s almost sure you are not going to make much money. First, your products will be perceived as low quality and will attract mostly low quality visitors, trouble-makers and so on. Second, you will need to sell a lot of these products to make profits with thin profit margins. This will not let you use paid advertising tools like PPC for example. And finally, if you are selling products at low prices, other sellers will quickly do the same and reduce your sales. Playing the pricing game isn’t the way to succeed.

Set reasonable prices for your products. You can have quality service, good site, SEO, creativity, advertising, packaging, promotions and so many more advantages instead of low prices.

4. You need top search engine rankings to succeed online.
I love getting search engine visitors. In fact many of my sites rely heavily on search engines traffic. But this is not the only method to succeed online. You can make lots of money online without getting a single search engine visitor. There are so many other free and non-free options to generate traffic: social networks, advertising, PPC, affiliates, referring sites, guest posting on blogs, niche directories, RSS aggregators and many more. In some industries (for example web design) getting top search engine rankings will cost money and efforts that may be out of the reach of an individual. On the other hand, everyone can make a Facebook fan page and promote it, especially with some creativity!

5. You need to have money in order to make money.
For sure! At least $10 for a domain name (although some make money even without a domain name). But that’s all that you really need. Don’t get me wrong, investing money in your web business can help a lot and can speed up the things very much. You can buy advertising, get software developed, get professional design, pay for content, buy links and so on.

But you don’t have to. I have started most of my sites without investment other than domain and hosting. Later I have invested money in some of the sites and kept developing other without investing money. Both ways work and have their advantages and disadvantages.

6. You can build a site, then forget about it and just enjoy the income
With very few exceptions this is simply not true. Web business is just like any other business and requires work. Of course static content sites or software services can run relatively on their own. But some kind of support is always required. And there is a lot of hard work while you get to the moment of making money. Don’t expect that you will throw some site online and the money will start flowing and never stop even if you don’t lift a finger.

7. At any cost avoid the “make money online” niche
People who write about make money online love advising their “students” against doing the same. They will explain you how you will be competing with the best, how the market is over saturated and how you just won’t succeed. I’m not sure why they do it – most probably they want to avoid competition.

Make money online is a huge niche and there is an enormous number of people who are interested in it. While there is also huge amount of supply, there is still a lot of money to be made in it, and there will always be. You shouldn’t be afraid of the huge competition – it only means that the market is huge.

While I make more money in other niches, “make money online” is the one that brings very large profits from a single customer.

8. Relying on online income is very risky.
And how is relying on offline income less riskier? Is working for a boss who can say “you are fired” tomorrow less risky? Or having a small store on the street where a powerful brand can open a new store tomorrow is not risky?

At least online you can have multiple sites and enjoy multiple sources of income. And if a site or even all your sites somehow lose their income you can always try new ones armed with the knowledge and experience of the first ones. And you can do this with almost no money, too.

9. The only people who make money online are those who teach others how to make money online.
That’s the opposite of myth 7. It’s not true. There are millions of small niches where you can create and expand your online business. People make money with sites about curing headache, making pots or returning ex-girlfriend. “Make money online” is only one of the millions. You can try your chances with it, but you can also make money online without ever mentioning the words “money” or “online” in your sites, even once.

10. Affiliate marketing is the best way to make money online
Just like offline, there are many methods to make money online. Affiliate marketing is good, but it’s only one of them. You can make money selling only your own products for example. You can create software (if you are not a programmer you can hire someone to program it), you can sell designs, information products, music, everything.

Some online marketers make money only with AdSense and other advertising without selling neither their own, nor affiliate products. This is just as vital as affiliate marketing. Your business is not tied to the way it makes money and you should try various ways.

For example one great way to make money online is drop shipping. Learn how to dropship and find good dropshipping companies to grow a great online business!

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Hard Money Lenders Myths Debunked

Hard MoneyWhat is a hard money loan?

Before any misconceptions are made you should know what a hard money loan is! A hard money loan is a type of loan in which private investors lend you money on the value of their physical property. This is not your average loan, where money is taken from a bank or another financing business.

This asset based loan financing is very secure as it basically receives funds secured by real and actual owned property. The process can be described as “personal.” More evaluation is done by the broker to better suit the needs of the investor in need. In essence this type of loan is more personalized because a broker will be able to work more closely with the client, in comparison to getting a loan from a bank.

Common Myth: Not Trustworthy?

For people who are not familiar with financing terms, hard money lending is a legitimate option to financing an unfinished construction site and can be easier to go through than a bank. Banks usually have more rules and regulations, and can take longer to come to you with an answer on your pending request.

The reality is that people who turn to hard money loans usually do it for a reason. These reasons can range from, not having passing credit, to not having any credit at all. There are times where a project is too risky and a bank will not take the risk. That is not the case for hard money lenders, as they analyze the situation more than the banks and charge a higher interest.

This myth is debunked because these lenders are and have to be credited and approved businesses by the state just like a bank would.

Common Myth: Hard money lenders are the “loan sharks” of the finance industry?

This myth is one of the more offensive ones to people who work in the industry. Hard money lenders are usually successful business people within the community they invest in. Simply trying to benefit the company and the client. It is not right to portray investors in that light. In some situations hard money lenders are the ones who can be the game changers in saving a project.

This myth is debunked because you can’t prove that these lenders are in the same water as loan sharks!

Common Myth: Hard money loans are difficult to obtain?

Nothing is easy! There is always a possibility that something can be difficult to obtain. But these lenders do in depth research on your needs and situation, which usually impedes some of the difficulty. In most situations little information is needed, the information needed though is usually based on the value of the property. This is a very different approach compared to a bank where they might take weeks to review with investors and committees. What makes these loans even more accessible is they can work with properties in poor conditions and are able to quickly fund.

This myth is debunked because it is not difficult to obtain compared to a bank!

Yanni Raz is a hard money lenders and trust deed investments specialist as well as a blogger and contributor. The goal is to educate other real estate investors before they are getting into bad real estate deals. Yanni Raz’s main Blog:
You can read his articles and learn more about the market.

Good Luck.