Set forth and describe two of the basic qualities needed for any item to be used as money.

Q: why can't food be used as a form of money?

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

Q: What are six qualities of the ideal money?

A: Money is basically the trustworthy item or a verified thing which is used for the exchange of goods…

Q: What are the THREE basic functions of money? as a commodity as a store of value as a barrier to…

A: Money - It is a legal tender accepted as payment for goods and services. It is accepted for…

Q: How do banks create money?

A: Money and Banks are intertwined. Banks are one of the financial institutions of the nation. A major…

Q: What is the primary function of money. Explain in detail . No plagiarism allowed. Thankyou

A: Money is the medium of exchange between the buyers or sellers such that buyers buy the commodity and…

Q: what tools are used by the central bank in Jamaica to affect the money supply

A: In the case of Jamaica, the 2 main operational tools are OMOs and reserve requirements. The Bank of…

Q: An advantage that money has over other assets is that it:   a. Provides a higher return to the owner…

A: Money functions as 1) unit of account 2) medium of exchange 3) store of value 4)  payments to be…

Q: Could corn be used as commodity money?

A: Commodity Money: The commodity money refers to the commodities that were used as the medium of…

Q: Joey Espinoza has $1,000 in cash, he deposits the total amount in LegionBanc How much can LegionBanc…

A: Reserve requirements are the minimum amount of cash from the deposits that the bank is required to…

Q: The functions of money are * a. medium of exchange, unit of account, and means of payment b.…

A: Money is the most liquid form of asset which can be used to buy goods and services.

Q: How do banks create money?  Please explain

A: Under the fractional reserve banking system, the banking institutions keep aside a fraction of…

Q: Explain why credit cards are not considered as money.

A:

Q: In many casinos ,a person buys chips to use for gambling.Within the casino 'swalls, customers often…

A: ANS The four primary functions of money are: Medium of exchange A standard of account Store of…

Q: the most important function of money is 'store of value' Question 17 options: True False

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What components of money do we count in M2?

A: Answer: Introduction: Money: Money is the stock of assets used for transactions. For instance,…

Q: Nafisa buried money in her garden to use in an emergency. State, which of the three functions of…

A: Money is something that is accepted as payment for goods and services. It is also a legal tender…

Q: The money in your personal checking account is counted as:   A. Neither M1 nor M2 money…

A: M1 is the measure of money which includes -  M1 = Cash + Demand Deposits + Deposits in Checking…

Q: In many casinos, a person buys chips to use for gambling. Within the casino's walls, customers often…

A: Given : In casinos, chips are used as money to purchase goods and services.

Q: What Is  bank collections?

A: Bank is the financial institution which accepts deposits of public and makes loan to earn profit.

Q: When a cash deposit is made to a current account in a commercial bank, money supply will decrease.…

A: Reserves are the entire sum of money stored with commercial banks. A check-able deposit is an…

Q: Debit cards allow an individual to transfer funds directly in a checkable account to a merchant…

A: Money:Money refers to anything which is accepted by the people as a medium of exchange. It could be…

Q: Fiat money is accepted as money becaus?

A: The term is gotten from the Latin word fiat, and that implies an assurance by power — for this…

Q: If people use ketchup packets as a medium of exchange, what type of money would they be?

A: When ketchup packets act as medium of exchange then the money would be called as commodity…

Q: Explain money, types and functions of money.

A: Human needs a variety of goods and services to sustain life but they have the skills to produce one…

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

A: In economics, money refers to anything that is widely accepted as a medium of exchange of goods and…

Q: Which of the following characteristics of money is associated with the base good being easily…

A: The economics as a study works on the basis of how the economies all over the world operate. The…

Q: Which of the following is not one of the three functions of money? Medium of Exchange Credit for…

A: Money has three important functions.

Q: What is the difference between book money and paper money?

A: Barter system is a demonstration of exchanging labor and products between at least two gatherings…

Q: True or False: When you deposit currency in a checking account, cash goes out of circulation and the…

A: Answer to the question is as follows :

Q: Why credit cards are not money? Explain any five points.

A: Money is any object which is acceptable legally as payment for services and goods and also for the…

Q: Explain Money, and the four assets that qualify as money.

A: Money is anything which is able to buy goods. Money is a medium of exchange for goods and services.…

Q: What are the four functions that money serves?

A: Money is an economic unit that is used to conduct daily transactions. Prior to the use of money, the…

Q: Compare and contrast representative money, credit money and commodity money

A: Representative money:- It can be defined as the means of commerce, frequently printed on paper, that…

Q: what is the purpose and functions of inside money transfer?

A: In Democratic government system typically, it has been observed that there is both public and…

Q: What distinguishes money from other assets in theeconomy?

A: Following are the points which distinguish money from other assets : 1. Money is highly liquid as…

Q: How does the banking system create money? Explain

A: The important function which the banks performs is the creation of money in the economy. This…

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.