Monday, 18 April 2011

Clogging


Clogging literally means hampering or obstructing. As a market term, it refers to a situation when the market is saturated with surplus funds which obstruct the normal operation of business. Steady flow of capital is an essential requirement of a market but, sometimes, funds pour into more than they are required. The surplus availability of funds eventually disturbs the normal functioning of the market and results in the Clogging of business activity.

2 comments:

  1. informative .and .excellent good job done :)

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  2. in case of excessive surplus funds , how market functions disturbs?

    ReplyDelete