Can a country get out of recession by printing more money?



  Selwin - Namibia

Posted: October 20 2012

  NDBS Answers:

If a country  prints more money, the retailers or places where the money is suppose to be spent will increase their prices and lead to inflation where the price of goods rise above the earnings.  And the money in each country must be attached to the production of goods and rendering of services which will tell how the economy is growing or going down.  If production becomes more there will be jobs for people and the companies will employ more people who will earn money than having money made available.  



  How do rating agencies come to their findings and which institutes do they focus on? 

Lovemore - Harare

Posted: October 20 2012

 NDBS Answers:


The ratings agencies run credit checks on companies, countries and financial products.  What they do is assess how likely a borrower is to be able to repay its debts and help those trading debt contracts in the secondary market. Credit ratings are used by investors, issuers, investment banks, broker-dealers, and governments. For investors, credit rating agencies increase the range of investment alternatives and provide independent, easy-to-use measurements of relative credit risk; this generally increases the efficiency of the market, lowering costs for both borrowers and lenders. This in turn increases the total supply of risk capital in the economy, leading to stronger growth. It also opens the capital markets to categories of borrower who might otherwise be shut out altogether: small governments, startup companies, hospitals, and universities.


  What determines the wealth of a person, the money the person has or the assets? 

Peter Mbalula - Cape Town

Posted: October 20 2012

NDBS Answers:


Wealth of a person is measured against what the person owns both in liquid assets, meaning any accessible money or assets that can be sold to get money.  The other measure is value of possessions; these are items that cannot be exchanged quickly for cash.  Also the debts one has can be used as the more debts one has that may affect the entire wealth since debts are on arranged payments and creditors can apply for liquidation if they are not paid as per agreement, and if the person is owed that is still counted in the personal wealth is the money is recoverable.  If a person owns a company the assets in the name of the company as not counted as personal wealth.


  Is Quid Pro Quo type of contract worth entering into? 

NewdiscoveryBS Reader

Posted: October 19 2012

NDBS Answers:


This is a Latin phrase meaning "something for something". This term is used mostly in business circle where company A enters into agreement with company B whereby A provide services or goods to B in return for goods or services that will benefit either party.  The risk in this kind of arrangement you may not quantify the exact value of the goods you are receiving or service versus the service or goods you are providing.   Win-win situation is seldom.





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