Prisoners sometimes determine a single good to be used as money. This good becomes Select one: O a. neither a unit of account nor a medium of exchange O b. a unit of account but not a medium of exchange O c. a medium of exchange and a unit of account O d. a medium of exchange but not a unit of account

Prisoners sometimes determine a single good to be used as money. This good becomes Select one: O a. neither a unit of account nor a medium of exchange O b. a unit of account but not a medium of exchange O c. a medium of exchange and a unit of account O d. a medium of exchange but not a unit of account

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter27: Money And Banking

Section: Chapter Questions

Problem 6SCQ: Imagine that you are in the position of buying loans in the secondary market (that is, buying the...

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Assume that you are interested in earning some returnon the idle balances you usually keep in your checkingaccount and decide to buy some money market mutualfunds shares by writing a check. Comment on the effectof your action (with everything else the same) on M1and M2
3. Assuming equilibrium for gold is one hundred times the price of silver, $Au = 100$Ag, which of the following describes an action by an arbitrageur (arb)? a. when Au and Ag prices increase 10%, arb buys gold b. when Au and Ag prices decrease 10%, arb buys gold c. when $Au > 100$Ag, arb buys gold d. when $Au > $100Ag, arb sells gold
Assume that you are the owner of a company. You need money. Evaluate the advantages anddisadvantages of the ways of finding money. Finally, create your combination to find money.In this context, underline the reasons of your combination. In addition to this issue, imaginethat you have started your business and began to earn money. Talk about the ways to usee thismoney.
10. Which of the following purchases is most likely to be affected by changes in interest rates? Select one: O a. B. Food O b. D. Cosmetics O c. B. Food O d. C. House O e. A. Alcohol
3. What are the inherent disadvantages of a barter system?
Imagine that you are in the position of buying loans in the secondary market (that is, buying the right to collect the payments on loans) for a bank or other financial services company. Explain why you would be willing to pay more or less for a given loan If: The borrower has been late on a number of loan payments Interest rates In the economy as a whole have risen since the bank made the loan The borrower Is a firm that has just declared a high level of profits Interest rates in the economy as a whole have fallen since the bank made the loan
barter – the trade of foods for goods- is booming. according to the us department of commerce, barter accounts for 30% of the world’s total business, and experts estimate tat 65% of fortune 500 companies engage in barter to one degree or another. if a medium of exchange clearly had advantages over barter, why does barter exist today?
1. Will Stephanie have enough funds for her investment in stocks and bonds, when needed? What will be the surplus/shortfall, if any? 2. Given that Stephanie’s bank offers an interest rate of 6% per year, what additional amount should she have deposited as a fixed deposit in the bank so as to accumulate the amount needed for her investment in stocks and bonds when needed?
Suppose the economy of a large nation has a defense industry, a banking industry, and apharmaceutical industry. 1-unit output of defense requires 0.6 inputs of defense, 0.2 inputs ofbanking, and 0.2 inputs of pharmaceuticals. 1-unit output of banking requires 0.1 inputs ofdefense, 0.4 inputs of banking, and 0.5 inputs of pharmaceuticals. 1-unit output of pharmaceuticalsrequires 0.1 inputs of defense, 0.2 inputs of banking, and 0.2 inputs of pharmaceuticals.If the nation wants to have surpluses of 106 units of defense production, 243 units of bankingproduction, and 216 units of pharmaceutical production, find the gross production of eachindustry.
What is Canadian currency today? OA. convertible paper money. OB. fiat money. O C. credit money. D. commodity money. O E. deposit money.
Please xplain why the answer is this: a) 0.1 * 1000 = 100 b) 1000-100 = 900 c) Let CU be currency in circulation Old MS = CU + R*[1/reserve deposit ratio] = CU + existing created deposits = CU + 30000 New MS after deposit = [CU – 1000] + [existing created deposits] + [newly created deposits] = [CU -1000] + [30000] + [1000*1/0.1] Difference = -1000 + [1000/0.1] = 9000 a) 0.1 * 1000 = 100 b) 1000-100 = 900 c) Let CU be currency in circulation Old MS = CU + R*[1/reserve deposit ratio] = CU + existing created deposits = CU + 30000 New MS after deposit = [CU – 1000] + [existing created deposits] + [newly created deposits] = [CU -1000] + [30000] + [1000*1/0.1] Difference = -1000 + [1000/0.1] = 9000
5. Dena won $1,000 at a bingo game. She deposits her $1,000 winning into a money market fund so that she can use the money next year to pay her tuition. This is an example of money serving as a (an): unit of account. medium of exchange. store of value. investment good.