EVALUATION OF THE DYNAMIC EFFECTS OF IOLE CASH HOLDING IN A DEVELOPING ECONOMY

One of the most prominent characteristics of under developed nation is the use of high proportion of cash, relative to demand deposit in business transaction. This cash relative to demand deposit has resulted to the existence of idle cash in such economics. In an under developed country like ours, a significant percentage of money is held in form of cash a sizeable portion of this cash is kept idle, with the resultant consequence that the productive sector is denied they of such fund. This sizeable amount of cash that is not used for anything. Under the banking system ability to create deposit money, thus affecting the volume and cost of loans. The effect of these idle money has system magnified itself that it has resulted to unemployment low business investment and declining national income. This research has been organized into five chapters with the first chapter dealing on introduction, while the second chapter centers on review of related literatures chapter three showed the method of research used. Chapter four and five develled on analysis of data test of hypotesi summary of findgs, recommendations and conclusion respectively.