If you have the currency note of Rs. 5 in your pocket which was used in the past. Can we say that this is money today too? If yes then how and if no then why?

Q: Based on the equation of exchange, if nominal GDP is $550 billion and the velocity of money is 5,…

A: The equation of exchange can be written as follows:

Q: What is the significance of money?

A: Money is any object that is generally accepted as payment for goods and services and repayment of…

Q: Whatvis the money flow

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Explain the trade related to money (sarf): earnest money (bai-‘ul-urbun), sale of debt…

A: Trade defined as the exchange of goods and services in order to make money . It includes buying and…

Q: What is commodity money?

A: Money is anything that can be used for exchange of goods and services in the market. The four main…

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: f you have the currency note of Rs. 5 in your pocket which was used in the past. Can we say that…

A: Money is defined as anything which is legally acceptable as a mode of payment. The functions of…

Q: Which statement is not true?   Commodity money cannot be fiat money and vice-versa.   Commodity…

A: Money is something which is widely accepted by general public. It performs the various function such…

Q: What is the difference between printing money and creating money?

A: In an economy, the task of printing money is undertaken by the government. The central bank decides…

Q: In our daily life we use credit cards and debits cards for payments. Are credits cards considered…

A: Anything that is extensively used as a medium of exchange and accepted as payment is considered to…

Q: Frank Baum wrote the Wizard of Oz in favor of O eliminating gold as a commodity that backed money to…

A: The Wizard of Oz includes interpretations of L. Frank Baum's contemporary fairy tale (originally…

Q: what is the similarities and differences between money and currency

A: Money is anything that people use to buy goods and services. Currency is a physical form of money…

Q: Money is not an economic resource because:    a. Money, as such, does not produce anything.    b.…

A: According to economic definitions, money is a good that acts as a store of value and a means of…

Q: The use of money makes us more efficient because: Answer a. We spend more time trading and more time…

A: Money: The word money refers to anything that is used in the transactions or acts as the medium of…

Q: What is the role of money for Adam Smith?

A: The money is anything which is accepted by the economy and that has the ability to meet the basic…

Q: What's the role of the money in the economy?

A: Money is something that is used to make payments for the commodities purchased or to repay the debts…

Q: Write a post that explains why money is not the universal measure of all value.

A: Money is the major consideration for all the people in today’s world. Without money the people…

Q: If you were on an island with 10 other people and there were no money, do you think that money would…

A: Money economies and barter economies are the two sorts of economies. Our modern economies are based…

Q: Which of the following is NOT an example of commodity money? Group of answer choices Salt Tobacco…

A: In the past, the medium of exchange was barter system. A pre requisite for the barter system was a…

Q: Which one is a tool of the Federal Reserve? a. Banking for banks b. Controlling inflation c.…

A: The Federal Reserve is the monetary authority of the USA, tasked with the responsibility of…

Q: Explain the simplicity of money creation?

A: The cycle in which the financial system makes checkable deposits(CD) by loaning excess reserves. The…

Q: explain about the money creation and digital money

A: Money creation and digital money.

Q: inflation on Moneys if it is not invested

A: Inflation refers to increase in average price of goods and services in an economy.…

Q: When governments use monetary policies to make sure most citizens can find jobs, they are pursuing…

A: Federal Reserve has two mandates ie maintaining maximum employment and also achieving stable prices…

Q: Explain the following lines taken from the selection, Imagination and Reality by J. Winterson:  .”…

A: Money culture can't stand craftsmanship. In this world, we want to realize what we're getting, while…

Q: Which problem associated with barter transactions is reduced when people conduct these transactions…

A: When the barter system was in practice, they faced the problem of double coincidence of wants. When…

Q: What is a definition of money and list 4 factors that affect the demand for money?

A: Answer is given below

Q: According to Adam Smith money can be compared to our High Way System. Describe it?

A: Adam Smith was an economist who is known as the 'father of modern economics' due to his work in 'The…

Q: Why is it said that money is as money does? Does the Pakistani rupee perform all functions of money?…

A: The following problem has been answered as follows:

Q: What does “inflation targeting” strategy mean? Does the Central Bank of Republic of Turkey use this…

A: Inflation refers to the increase in the general price level. The inflation is worrisome for the…

Q: What is money? Explain the definition in terms of the functions of money?

A: Money is anything that is generally accepted by the people in the economy and used for the purchase…

Q: Which of the following statements about money aggregates is true?   A. M2 money includes all types…

A: An aggregate of the money assets in the economy at a given point of time is commonly known as the…

Q: a) Describe our society at present if it doesn’t use money. b) How the transactions would be if…

A: Money: It refers to the cash used by the people for doing the various transaction in an economy.…

Q: Monetary Policy: what are its goals? How does it work? Express your opinion about this matter

A: Monetary policy is tools available to the government in order to control the macroeconomic situation…

Q: Explain the concept of Commodity Money

A: Money is a liquid asset used to settle transactions. It works on the basis that its value is…

Q: Money is used as a means to make a payment, store of value (savings), and place value on goods and…

A: a) Money is defined as a medium of exchange, which performs the functions as follows: Medium of…

Q: Solve all the these subparts. What are the instruments of monetary policy? What is the policy rate…

A: Monetary policy is adopted by the central bank in order to manage money supply.

Q: What are the defects of Indian money market?

A: The money market is a group of institutions, traditions, and conventions created to facilitate…

Q: How does money overcome the problem of bottle system explain!

A: note:- I guess it is a barter system instead of a bottle system, so the answer below is based on how…

Q: What is commodity money? Is the money in the United States commodity money?

A: commodity money comprises of articles having worth or use in themselves as well as their worth in…

Q: What is fiat money? Give some examples.

A: Fiat Money refers to the currency that has legal tender by the decree of the government and is not…

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.