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Q: What is the importance of money demand volatility?
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Why does trading stock create volatility?

Simple answer is that volatility is simply price change. Price changes due to supply and demand so when people trade a stock it affects supply and demand.


What is Volatility in banking?

Volatility means there are changes of any kind to key factors such as interest rates, demand for products, customer payoffs of loans, availability of deposits, or any other element of banking.


What are importance of elasticity of demand in economics?

Importance of elasticity in economics


What is the total demand for money?

According to John Maynard Keynes, the total demand for money is composed of transactional demand, precautionary demand and speculative demand for money.


What is the VIX index?

VIX is not about volatility. The word "volatility" is used erroneously. Volatility would imply rapidly changing in EITHER direction. People have lost lots of money on account of the improper use of the word. I contacted the CBOE and they even admit the word is used incorrectly. They attribute it to a person 30 years ago who used the word improperly. It is a unidirectional measure of the ratio of S&P500 puts and calls, which is NOT volatility. The VXX is a product of Barclay's Bank and also uses the word "volatility" even though it does not track volatility, thus their product is misleading.Read more: http://www.answers.com/search?q=VIX+is+not+about+volatility.+The+word+"volatility"+is+used+erroneously.+Volatility+would+imply+raplidly+changing+in+EITHER+direction.+People+have+lost+lots+of+money+on+account+of+the+improper+use+of+t#ixzz1naTzgrKq


What is stock option volatility?

Stock option volatility is the amount of movement a stock is anticipated to make in a specific time frame. This information is important to investors to enable them to predict if they will make money or not.


What are the determinants of money demand in an economy?

discuss the determinant of money demand


What is the volatility of sugar?

The volatility of sugar is 600.00


What happens to money demand when there is an increase in interest rates?

money demand will decrease


Importance of demand analysis?

Analysis of demand is a methodology under which we analyze the influences of the determinants of demand on demand itself. It is important because the demand determines the sustainability and expansion of business


What is the relationship between demand for money and interest rates?

as interest rates increase, demand for money increases.


Importance of elasticity of demand?

It is important because if a company doesn't understand their product's elasticity of demand, they are screwed!