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HomeHomework HelpeconomicsNet Demand and Time Liabilities

Net Demand and Time Liabilities

Net demand and time liabilities refer to the total obligations of a bank to its depositors, which are categorized into demand liabilities (withdrawable on demand) and time liabilities (fixed-term deposits), affecting the bank's liquidity management.

intermediate
2 hours
Economics
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Overview

Net demand and time liabilities are essential concepts in economics that help us understand market behavior and financial planning. Net demand reflects the actual demand for goods and services after adjustments, while time liabilities represent future obligations that must be managed carefully. Toge...

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Key Terms

Net Demand
The total demand for goods and services after accounting for various factors.

Example: Net demand for cars may decrease if prices rise significantly.

Time Liabilities
Obligations that are due at a specific future date.

Example: A loan payment due in six months is a time liability.

Gross Demand
The total demand for goods and services without adjustments.

Example: Gross demand may not reflect actual market needs.

Cash Flow
The total amount of money being transferred into and out of a business.

Example: Positive cash flow indicates that a company is earning more than it spends.

Economic Forecasting
The process of predicting future economic conditions.

Example: Analysts use net demand to forecast economic growth.

Budgeting
The process of creating a plan to spend your money.

Example: A household budget includes all income and expenses.

Related Topics

Supply and Demand
The relationship between the availability of goods and the desire for them.
intermediate
Financial Management
The planning, organizing, directing, and controlling of financial activities.
intermediate
Market Analysis
The study of market conditions to inform business decisions.
advanced

Key Concepts

Net DemandTime LiabilitiesEconomic ImpactFinancial Planning