Deposits of Australian dollars held at authorised deposit-taking institutions are government money horizontal money part of the monetary base?
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Deposits of Australian dollars held at authorised deposit-taking institutions are
government money
horizontal money
part of the monetary base?
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- What backs the US dollar? Include the distinction between commodity and fiat money.Other things equal, an easy money policy will: A) reduce net exports. B) reduce GDP. C) increase interest rates. D) reduce the international value of the dollar.Can you think of any major disadvantages to dollarization? How would a central bank work in a country that has dollarized?
- Choose the correct answer and give correct explaination 1. A central bank can fix an exchange rateA. In perpetuityB. Only for as long as the market believes that it has the political will to do so.C. Only for as long as it has reserves of goldD. Only for as long as it has independence of monetary policy.If the European Central Bank decides to pursue a contractionary monetary policy to fight inflation, what willhappen to the value of the U.S. dollar?What is the fundamental difference between commodity money and fiat currency? commodity money has no intrinsic value, fiat is gold based commodity and fiat money are synonymous terms so long as they consistute the medium of exchange commodity money has intrinsic value, fiat does not commodity money requires governance institutions, fiat does not
- The cash rate in Australia is a benchmark interest rate which is set by the Board of the Reserve Bank of Australia and has recently been at a record low. (a) State the cash rate announced at the September, 2021, meeting of the Board of the Reserve Bank of Australia. (b) If the cash rate were to increase, would you expect the Australian dollar to increase or decrease against most other currencies? Explain your answer. (c) If the cash rate were to decrease, would you expect the Australian dollar to increase or decrease against most other currencies? Explain your answer. (d) Explain why the cash rate is not expected to increase until 2024 at the earliest?Which of the following is NOT a function of money? A. A medium of exchange B. A measure of inflation C. A store of value D. A unit of account Which function of money is best served by bitcoin? A. A medium of exchange B. A unit of account C. A store of value The ease at which an asset can be converted into a medium of exchange is known as A. Inflation B. Profitability C. Liquidity D. Wealth Economists have documented Pacific island economies in which large rocks and boulders were used as money. While this may work for a group of people who only transact with others on the island, the rocks would not be a useful form of money in the world economy because: A. Large rocks are not easily standardized B. Large rocks are not easily divisible C. Large rocks are not easy to carry D. All of the above are true In the mid 1800's, grain sellers in Chicago…47. Every economy is striving hard to update and improve their paper currency to protect it from counterfeiters. Which government institutions are responsible for printing money? a. Trade Department b. Ministry of Finance c. Central bank d. Ministry of Coins