Learning Activity 9.3 Question 3 (a) What are the functions of money? (b) There were three tools discussed in this session that are used by central banks to affect the money supply. However, not all central bank uses all three. Find out what tools are used by the central bank in your region to affect the money supply

Q: What are demand deposits and why should they be included in the stock of money?

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Q: Question 3 (a) What are the functions of money? (b) There were three tools discussed in this…

A: Money is anything which is acceptable as a medium of exchange to buy and sell goods and services in…

Q: D7) Federal Reserve and their impacts on our economy.   Role of Federal Reserve in Economy

A: D7) Federal Reserve and their impacts on our economy.   Role of Federal Reserve in Economy

Q: The deposit expansion multiplier will be larger the:  Greater the percentage of excess reserves…

A: Answer: Correct option: 4 (Smaller the reserve requirement) Explanation: The formula for deposit…

Q: Version 1 Explain the appropriate actions that the central bank should take if the economy were to…

A: Over the years, monetary policy has worn many hats. However, it ultimately boils down to altering…

Q: 24. Regulation of monetary circulation is a function of... 1. Commercial banks 2. Stock exchange 3.…

A: In order to ensure an economy of a nation tends to remains healthy, its central bank in turn…

Q: Question 1 The M1 definition of the money supply includes all of the following EXCEPT Select one: a.…

A: M1 is the most liquid form of money supply. This includes Currency in circulation, travellers…

Q: Identification __________1. The amount of money people wants to hold as a store of value; this…

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Q: the Reserve Bank increases the quantity of monetary base, then:     the cash rate falls —…

A: Reserve bank is the central bank of the country that controls money supply.

Q: The functions of money are:     a means of storing wealth and a means of evaluation     a medium…

A: Barter trades become especially extreme in a huge economy in view of the exorbitant costs,…

Q: QUESTION 10 Which mechanisms does the Federal reserve have to influence the money supply?…

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Q: Question 3 (a) Distinguish between legally required reserves and excess reserves. (b) Why don't…

A: Answer-

Q: Question 3 (a) What are the functions of money? (b) There were three tools discussed in this…

A: a) Functions of money are: It works as a unit of account: This is a function wherein different goods…

Q: Outline three (3) tools that can be used by the central bank to reduce the money supply

A: The important monetary policies that are used by the central bank of nation to control the money…

Q: Question M1 money is composed of.. A. currency,demand deposits, traveller's checks, other checkable…

A: The M1 is known as the narrowest measure of the money supply as it only comprises cash with the…

Q: QUESTION 21 A decrease in the money supply creates an excess supply of money that is eliminated by…

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Q: Question 26 What is the main purpose of monetary policies? reducing government spending in the…

A: Monetary policy is a set of tools used by a country's central bank to encourage long-term economic…

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: QUESTION 17 A change in the reserve requirement is the tool used least often by the Fed because it:…

A: Money Supply: - In an economy, the total value of money in circulation at a point in time is known…

Q: summary explaining the four main tools the Fed uses to change the money supply

A: The actions by authorities(Fed) of a country, to either expand or tighten the economy and its money…

Q: 1.Which of the following is not helpful in making something a good money?   Make it from…

A: From the question, the options we have area. Make it from  something everyone values, like gold.b.…

Q: 20. The key mechanism of monetary policy is the: A) Federal Reserve System's control over taxes. B)…

A: Monetary policy is the macroeconomic policy adopted by the monetary authority i.e. central bank in a…

Q: The borrowing from the central bank by the government leads to inflation as it increases the supply…

A: Debt monetization is the process when the government borrows from the central bank in order to…

Q: 5. The Federal Reserve's organization There are Federal Reserve regional banks. Which of the…

A: Monetary policy pursued by the federal reserve of USA is essential part of policy measures to tackle…

Q: Transaction One: Open a Bank and Accept Deposits Name your Bank Draw a T-Account Representing…

A: Assets: It refers to valuable things. Assets help in increasing the wealth of a person. It can be…

Q: i. How to withdraw money from an ATM? How to transfer funds from one bank to another bank?…

A: ATM stands for automatic teller machine which generally used for withdrawing and depositing of…

Q: 1. Desirable characteristics for money do not include Group of answer choices B. portability A.…

A: In an economy, money can be used as the medium of exchange and anything can become money if they…

Q: Exercises/Drills: Exercise 1: Form groups. Each group will be given a question to answer. 1. Discuss…

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Q: 19. Monetary policy that reduces the money supply will cause the interest rate to which will cause…

A: Monetary policy is a tool used by the central bank of a country, through which they impact the GDP,…

Q: Question 2 The monetary aggregates are measured by the private commercial banks are defined and…

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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: 1. If banks perform a switch from deposits to currency, what happens to the federal funds rate?…

A: The study of how buyers and sellers interact to determine transaction prices and quantities is…

Q: 23. Identify the four major methods the Fed uses to control the money supply. Give two examples of…

A: The central bank of the country controls the commercial banks and their functioning in the economy.…

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: Question    3 a) What    are    the    functions    of    money? b) Draw    diagrams    illustrating…

A:

Q: QUESTION 6 A central bank that desires to reduce the quantity of money will: a. a. Reduce the…

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Q: Illustrate the tools of money supply

A: The money supply is all the money and other fluid instruments in a nation's economy on the date…

Q: Assume that the banking system of a country has total deposits of 50 billion USD. The required…

A: For bank, the deposits by the customers is the liability and the money landed by the bank to the…

Q: Question 3 Which of the following is the most likely reason for a monetary policy that decreases the…

A: Monetary policy is a set of measures that a country's central bank can use to encourage long-term…

Q: Why was it important to American bankers to save the German economy?

A: In the post - World War I, the United States' foreign economic policy was selectively…

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.