How are cryptocurrencies popular nowadays (such as bitcoins) different from the currencies we used issued by central banks? Discuss briefly.

Q: Currently, can cryptocurrency perform the three functions of money. Explain briefly.

A: Cryptocurrencies are a new type of investment. This type of investment does not require a…

Q: Which of the following is the most "liquid" in the Money Market? A. Retirement Accounts B. Treasury…

A: * ANSWER :-

Q: Why does the Federal Reserve require commercial banks to have reserves? What is the difference…

A: Reserves plays an important role in regulating money supply in the economy. Reserves are assets for…

Q: Briefly explain how banks can optimize their position through managing their use of commodities?

A: The banking sector is undergoing a significant transformation, fueled by new competition brought on…

Q: Why don’t banks hold 100 percent reserves? How is the amount of reserves banks hold related to the…

A: Reserve:The fraction of deposits that banks keep and do not use it give the loans is called the…

Q: Which of the following institutions oversees the safety and stability of the U.S. banking system?…

A: The central bank is the national bank that provides banking and financial services to the government…

Q: What is the Eurocurrency market, and how is banking in the Eurocurrency market different from…

A: A market is a place where the exchange of goods and services takes place between the buyers and…

Q: Are Deposit Insurance Institutions necessary in countries with no history of bank failures?

A: Deposit insurance is a measure carried out in numerous nations to safeguard bank investors, in full…

Q: List and briefly explain the functions of money

A: Money is an instrument that act as the medium of exchange for the purchase of goods and services.…

Q: How is a bank able to lend more money than it has in reserves?

A: Banks depend on a fractional reserve banking due excess lending of actual deposits on hand by banks…

Q: Which of the following terms is used to describe the proportion of deposits that banks are legally…

A: Central Bank give instruction to the commercial bank to keep a certain percentage of their deposit…

Q: Write a brief answer to the following question. Give two reasons that support the independence of…

A: The Federal Reserve Bank is the central bank of the U.S that was established on December 23, 1913,…

Q: Distinguish between IMF and Word Bank?

A: The world bank and the international monetary fund (IMF) were founded in July 1994 in the Bretton…

Q: Why does the Federal Reserve require commercial banks to have reserves?

A: Reserves are the obligations of the commercial banks to have against their deposits. These are the…

Q: The amount a bank is required to withhold on a customer's deposits on reserve in their vault or on…

A: Banks hold a certain proportion of deposits as required reserves, mandated by central bank.

Q: Discuss the history of banking, from the origin of the term "bank" up to the appearance of the paper…

A: The payment system has evolved with time. Initially, the barter system was used where the…

Q: Why do banks practice fractional reserve banking

A: When a customer deposits a certain amount of money in a bank, the bank does not lend out the entire…

Q: Briefly explain how banks can optimize their position through managing their use of derivatives?

A: The probability of loss due to a borrowers failure to make payments on any type of debt is called…

Q: In the United States, which of the following systems was established to be in charge of money?Choose…

A: The United States of America's central bank is the Federal Reserve which is also known as the Fed.…

Q: dentifying what variable is affected in the money market and providing a detailed explanation as to…

A: The above graph indicates the market situation which is affected by the interest rate in the…

Q: Why don’t banks hold a 100 percent reserves? How is the amount of reserves bank hold related to the…

A: The banking system refers to the industry that provides financial facilities to households and…

Q: monetary reserve?

A: The banks which serve the general people and companies, are called commercial banks. Monetary…

Q: Why has the number of bank holding companies dramatically increased?

A: A bank holding company is a company that exercises management and control over the banks they own…

Q: IS CRYPTOCURRENCY MONEY, WILL IT BECOME MONEY, & WHAT MAY BE THE EFFECT OF CENTRAL BANK DIGITAL…

A: Answer:-  ▪︎Cryptocurrency is a type of virtual money that consists of a collection of binary data…

Q: What are the two main assets of the Central Bank?

A: The central bank has different assets than the commercial banks because Centra bank deals with the…

Q: Can the banking sector "create" money? Explain your answer.

A: Banks are defined as financial institutions that perform various financial functions for their…

Q: What is meant when economists say that the Federal Reserve Banks are central banks, quasi-public…

A: The federal reserve system refers to the central banking system that is followed in the U.S. Many…

Q: hold 100% of their deposits

A: 100% reserve system in which banks keep the total amount of each depositor’s funds in cash. This…

Q: As far we know, central bank supervise the member banks and if CB the finds that a bank has not been…

A: Central banks in every economy supervise the way the banks work. They control the money supply in…

Q: What is the reserved requirement for Philippine Banks?

A: Reserved requirements refers to the proportionate amount of total deposits that a commercial bank is…

Q: These refer to the amount of cash which are required from banks to be reserved as instructed by…

A: A ‘central bank’ is a financial institution that has been given the exclusive right to produce and…

Q: What caused the banking crisis of 2008? Why did the banking crisis lead to the Great Recession?

A: When talking about the banking crisis in 2008, it can be said that those crisis were very larger…

Q: In fractional-reserve banking system, such as we have in the united states, banks create money. How…

A: A fractional reserve banking system refers to a system in which banks hold reserves whose value is…

Q: Can you think of a reason why people in general donot lend money to one another to buy a house or…

A: They’re likely coming to you because they can’t get a loan from a bank. which means traditional…

Q: What is a bank? What are its functions in our economy?

A: Banks are heavily regulated in most jurisdictions because they play such a critical role in…

Q: How do private commercial banks multiply the quantity of money placed in circulation by the Federal…

A: Answer: Introduction: Federal Reserve is responsible for maintaining money supply in the economy. It…

Q: Why does the Federal Reserve limit how much a bank is allowed to "multiply" its deposits?

A: when commercial banks receive a deposit they keep a certain part of that deposit with them in form…

Q: Is Islamic banking really different from conventional?

A: The general conclusion is that Islamic banks are less efficient, have higher intermediation ratios…

Q: What are the functions of the reserve Bank of India?

A: The RBI is the central bank of India whose essential capability is to oversee and administer the…

Q: How is the amount of reserves banks hold related to the amount of money the banking system creates?

A: A central bank is the apex bank that manage, regulates and implements the rule to be followed by all…

Q: What is the difference between a banks reserve ratio and target reserve ratio?

A: The money supply is the supply of currency in an economy. The rise in reserve ratio causes the fall…

Q: Which of the following is a money market security?

A: Money market securities are debt products with maturities of one year or less. Money market…

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…