Explain with graph and economic solution Why credit card is not defined as money?  How online banking affects money demand?   Subject  : Macroeconomics

Q: COVID-19 has resulted in many persons being unable to work and has led to a decrease in economic…

A: Under various events of uncertainty, there are various tools available before a government to…

Q: (Monetary Control) Suppose the money supply is currently $500 billion and the Fed wishes to increase…

A:

Q: M2 definition of the Money Supply includes which which of the following?   Question 30 options:…

A: Functions of money . A store of value . a unit of account . a medium of exchange

Q: QUESTION 3 One view of the role of Banks is that they create liquidity. What does this liquidity…

A: Commercial banks plays a significant role in the growth of an economy as it creates liquidity to…

Q: a. What is the demand for central bank money? b. Find the equilibrium interest rate by setting the…

A: “Since you have posted a question with multiple sub-parts, we will solve first three subparts for…

Q: Fill in the Value of Money column in the following table. Quantity of Money Demanded (Billions of…

A: Price level (P) Value of money (= 1 / P) Money Demanded 1 1 1.5 1.33 0.75 2 2 0.5 3.5 4 0.25…

Q: Credit cards are considered money because they serve to purchase goods and services." Explain your…

A: Money is a resource or asset that is accepted and used as an exchange medium to buy commodities and…

Q: TOPIC: Dynamic Model of Money Explain this statement: "The dynamic model of money starts with the…

A: In the long run, the steady state of the dynamic model of money may be determined, in which all…

Q: Transparency is a key element of the monetary policy framework. Explain how transparency helps…

A: The problems that rise due to the independence of a central bank are :- when a central bank is…

Q: Please draw a detailed graph of a money market depicting an interest rate of 3% and money supply of…

A: Money market shows the interplay of money supply and money demand in the market. It is the market…

Q: Stephanie deposits $500,000 in Bank of America. Assuming that banks lend out everything that they…

A: Total Deposit = $500,000Required Eeserve = 14%Intrest rate = 2%

Q: Fiat money is any money that   Group of answer choices a. Earns interest when deposits in banks.…

A: Most modern currencies are called fiat currencies, including the euro, the U.S. dollar, and other…

Q: “Digital banking makes life easier for consumers, digitalization has change the face of banking,…

A: Banking: Banking is an industry that handles money, credit, and other monetary exchanges.  They…

Q: COVID-19 has resulted in many persons being unable to work and has led to a decrease in economic…

A: A business cycle represents the upward and downward movement of economic activity across the long…

Q: Complete the following table:

A: Demand and Supply is defined as the relationship between the quantity of a good or service which a…

Q: Fiat money has Select one: a. value, because it can be redeemed for gold by the central bank. b.…

A: In an economy, there is an evolution of money over a period of time due to change in the market…

Q: Answer with graph and analysis How online banking affects money demand?   Subject :…

A: The desire for people to keep money in the form of cash or in the form of bank deposits is referred…

Q: COVID-19 has resulted in many persons being unable to work and has led to a decrease in economic…

A: The advent of COVID-19 lead to a fall in the economic activity because many people is unable to…

Q: 41: Suppose a bank acquires an extra $ 1 of stores and no important save extent exists. By what sum…

A: Money supply: Money supply is the total volume of money that has been in circulation in an economy…

Q: Part (a) Introductory economics textbooks frequently claim that central banks can perfectly control…

A: The central-bank uses monetary policy to control the money-supply of the economy. The money-supply…

Q: Would a CBDC meet the definition of money? In your explanation, discuss each of the functions of…

A: 1. CBDC has been compared to a digital banknote in the past. Although it may have some similarities…

Q: If the economy is at potential GDP and the SARB increases the quantity of money, then Select one: a.…

A: Here answer is “Real GDP rises temporarily above potential GDP”

Q: (Q#4) Banks have become much less strict about issuing new credit cards. They are issuing far more…

A: Demand for money refers to the cash balance you need to hold for transaction purpose, precautionary…

Q: #27. Identify two examples of commodity money. #28. The U.S. dollar is an example of fiat money.…

A: Money is an economic instrument that is defined by its primary function i.e. to act as a medium of…

Q: Describe the evolution of money, that is looking at bartering to modern day Money. In your…

A: The money is a commodity which has generally been accepted as a means of exchange and is generally…

Q: Introduction to Macroeconomics Required Reserves and the Money Multiplier When a bank receives a…

A: Given  Amount Deposited Required Reserves (15%) Excess Reserves Amounted Loaned $1000 $150…

Q: What "backs" the money supply of the United States? Multiple Choice the fact that currency is issued…

A: Money: Money is general is any object or item that can be used as a medium of exchange, store of…

Q: Which of the following options best defines money? Explain briefly. a) Paper currency or coins that…

A: Money refers to a medium of exchange of goods and services in an economy. It means that any good or…

Q: Assume that the following data characterize a hypothetical economy: money supply = $100 billion;…

A: Given: Under the hypothetical economy, the given money supply = $100 billion Quantity of money…

Q: How is the opportunity cost of holding money determined? Question 18 options: by consumer income…

A: The opportunity cost of holding cash is the expense that could be understood assuming cash were…

Q: Explain on the impact of a drop in the discount rate on the supply of money in the market.

A: Discount rate is the rate of interest which Fed or any other nations Central Bank charges from their…

Q: Do federal gold reserves count as M1 money?

A: M1 represents the money supply in the economy by the Central Bank. It represents the coins and bills…

Q: Interest Rate Transactions Demand for Money Asset Demand for Money Money Supply 2% $220 $300 $460…

A: Generally money supply and interest rate are negatively related to each other (all else being…

Q: Question 34 If the demand for money exceeds the available supply, it can be expected that: O the…

A: Answer is given below

Q: Discuss the concept of money from the perspective of a consumer and an investor.

A: Money is anything which is generally accepted s a means of exchange and medium of value while buying…

Q: Explain the concept of a surplus of money versus a shortage of money.

A: Money is a commodity that is used for transaction that involves the transfer of goods and services.…

Q: Suppose the current money supply (M) is 4.8 billion U.S. dollars, the nominal gross domestic product…

A: According to the quantity theory of money, the general price level of goods and services is…

Q: Why do banks create money? Do they create money to help the Federal Reserve control the money supply…

A: The financial institution that is recognized for making loans, receiving deposits, and providing…

Q: Explain why a bank typically holds as reserves only a fraction of its deposit liabilities? In light…

A: The required reserve ratio (RR) is the minimum amount of reserves that a bank must hold. It lowers…

Q: “Whenever currency is deposited in a commercial bank, cash goes out of circulation and, as a result,…

A: The money supply in the economy of a nation on the date calculated is both the currency and other…

Q: Using the money market theory, illustrate the effect of the following changes on the level of…

A: The market that deals in loans of a shorter duration which is for a period of a year or less…

Q: Despite the emerging trends on the use of cryptocurrency, economics research so far has provided…

A: Cryptocurrency is a digital mode for money. Cryptocurrency in itself has no physical coin or note…