The essential characteristic required before any substance can function as money is that O none of the options is correct it be issued by the government. people accept it as money. O the supply of it be unlimited and uncontrolled. O it be backed by a precious metal.
Q: True or False: Credit cards are included in the M2 definition of money. O True O False upction 21
A: M2 = M1 + savings deposits + certificate of deposits + Mutual fun account M1= cash + checking…
Q: If the public has a currency ratio of 0.2 and banks have a reserve ratio of 0.2, how much cash does…
A: here we calculate the need of money supply which print by central bank , so we calculate the…
Q: What function of money is highlighted if someone puts cash under his or her mattress to have on hand…
A: Money is an economic unit that serves as a means of exchange in transactions. Money offers a variety…
Q: Explain the classification of money into three parts prevailing in the economics
A: Actually money refers to a certain money value which is always inscribed on a written paper note or…
Q: 1. a) How do the practices of seigniorage and debasement impact the value of species standard money?…
A: Such practices reduce the real value of money Seigniorage is the cost of printing money. Debasement…
Q: 1. Will an overnight repo agreement increase or decrease the money supply?
A: A repurchase agreement (repo) is a type of short-term financing for government securities dealers. A…
Q: When money serves as a mechanism for transforming current income into future purchases, it is…
A: Money is a financial asset which is used to buy goods and services
Q: Which of the following is an example of fiat money? Oa U.S. one-hundred dollar bill O a government…
A: Answer: Correct option: A (a U.S. one-hundred dollar bill) Explanation: Fiat money refers to the…
Q: 4. Identify the work of Irving Fisher A. O A Treatese on Money
A: To find : Work of Irving Fisher.
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 are two things that meet the criteria of the functions of mc ot necessarily be what you would…
A: *Answer: *2 Double Coincidence of Wants This is a scenario where a buyer wants to purchase a…
Q: Fiat money has Select one: a. value, because it can be redeemed for gold by the central bank. b.…
A: In an economy, there is an evolution of money over a period of time due to change in the market…
Q: The amount of loans that a bank can create is limited by Select one: O a. laws enacted by…
A: The economies around the globe are involved in various types of economic, and financial activities.…
Q: Explain the terma future amount of money (F)?
A: Answer - Term future amount of money - Term future amount of money it is the growth or decline in…
Q: Why have some economists described money during ahyperinflation as a “hot potato” that is quickly…
A: Hyperinflation is a condition in which a country experiences a very high rate of inflation. For…
Q: a) Most people in the country of Classica tend to keep $3 out of every $100 of their cash holdings…
A: a.i) The people keep $3 out of $100 in the economy with them in their purse. This means that people…
Q: Which of the following is considered least liquid? O a) currency bills O b) Checking account O c)…
A: In economics, liquidity is defined as the ability of an asset to be turned into cash. An asset is…
Q: Espinoza has $1,000 in cash, he deposits the total amount in Legion Banc. How much can LegionBanc…
A: In the banking sector, when an individual deposited his money, the proportion of this money is used…
Q: in the money supply in the market for money creates excess, everything else held constant. money,…
A: Money market is in equilibrium where demand for money and supply for money equal with certain level…
Q: Explain any two components of money supply flowing in an economy?
A: According to the given question Supply of money basically refers to the circulation of the money…
Q: When you hold your wealth in money (M1) form, the main purpose is to: O all of these are correct. O…
A: M1: It includes very liquid cash, traveler's cheque, demand deposits.
Q: 2. Which of the following must hold for fiat money to be a good store of value? a. It should be…
A: We will answer the first question since the exact one was not specified. Please submit a new…
Q: f the Federal Reserve decided to include virtual money like bitcoins in i measure of the money…
A: M1 and M2 are two measures of money. M1 includes all coins and currency that are in circulation and…
Q: The demand for money in an economy is high when the Oa. interest rate is high. Ob. price level is…
A: At the marketplace, money is demanded by the people if the country to make consumption and…
Q: The quantity theory of money predicts that, in the long run, inflation results from the O velocity…
A: The overall price level of goods and services is proportional to the money supply in an economy,…
Q: Question No.2 (a) Define the term “money”. (b) List and describe the four functions of money.
A: Money is a medium that is used by the individuals in the economy to accept it for the exchange of…
Q: (a) Why do households hold money? What type of bank deposits are included in the money supply?
A: In an economy, money is used as the medium to make economic activities such as buying or selling of…
Q: An economist is interested in knowing how the current political situation in the USA affects family…
A: Monetary aggregates are a formal means of calculating a country's total amount of money.Given their…
Q: What are the functions of money?
A: Hello, thank you for the question. Since there are multiple questions asked here, only the first…
Q: True or False: An open-market purchase reduces the size of the monetary base and reduces the size of…
A: Open market purchase means the Fed purchases bills from banks or public and in return give money so…
Q: a. What will be the total change in money supply as the result of this increase in deposits? Explain…
A: The concept of money supply states that when money is deposited in the bank, after keeping the…
Q: Which of the following is NOT a function of money? O a. A unit of account O b. A store of value O C.…
A: Money has three primary functions which are mentioned in next step
Q: Explain the connection between money demand and money supply by using money
A: "Since you have asked multiple questions, we will solve first question for you .. If you want any…
Q: Please answer .no handriting please.use word if can With the aid of a well labelled diagram,…
A: Meaning of Inflation: The term inflation refers to the situation under which there is an excessive…
Q: chere is excess demand for money at the prevailing interest rate, the likely response is until the…
A: The quantity of money demanded decreases as the interest rate rises. The quantity of money demanded…
Q: Which od the following statement is true about money? -it makes markets more efficient than barter…
A: Money is something which has general acceptability in the market. Money was introduced due to…
Q: 2. Explain the effects of excessive money supply and how to stop it.
A: The excessive money supply is the reason for the change in expansionary monetary are purchasing…
Q: When prisoners use cigarettes or some other good as money, cigarettes become Select one: a.…
A: Money has three forms i.e. commodity, fiat, and fiduciary.
Q: All of the money that we use today is commodity money credit cards O fiat money with no intrinsic…
A: Fiat money is a government issued currency that is not backed by a commodity such as gold.
Q: Which of the following best illustrates the unit of account function of money? Select one: O a. all…
A: There are three functions of money namely the unit of account, medium of exchange, and the store…
Q: During a period of rapid inflation the central bank increases the reserve requirement. Select one: O…
A: Answer: Correct option: option (b) Explanation: Inflation refers to the situation in which the…
Q: Chartered banks increase the money supply by: Select one: pay withdrawals to depositors. O a. O b.…
A: Banks acts as intermediaries and play an important role to create money in the economy. If these…
Q: Explain ‘double coincidence of wants’ and how it interacts with money and its functions.
A: The lack of medium of exchange leads to the problem of double coincidence of wants.
Q: QUESTION 3 What type of money are the unexpired packages of mackerel? O Commodity Money O…
A: Since you asked multiple questions, we will solve the first question for you. If you want any…
Q: If discount rate goes down then money supply goes up. O True O False
A: Discount rate, conjointly called rediscount rate or bank rate, is the rate of interest charged by a…
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- Explain why you would be more or less willing to buygold under the following circumstances:a. Gold again becomes acceptable as a medium ofexchange.b. Prices in the gold market become more volatile.c. You expect inflation to rise, and gold prices tend tomove with the aggregate price level.d. You expect interest rates to rise.Answer all..I know bartleby policy.if you solve only 3 then I dounvote and solve all 5 correct the give 3 upvotesWhen the manager of a department store attaches price tags to his/her products, he/she is using money as a Group of answer choices unit of transfer. unit of account. store of value. medium of exchange.
- Answer all other wise i dounvote..i know barteby policyHow is the value of money originally determined? a. By a discount cash flow analysis of the commodity in question b. By whichever asset is decreed by a government as the money of the land c. By using game theory, where market participants appraise how other participants value it d. By its use in the production of other goods, such as when it is used in the production of high-value goodsClean L/C doesn't require financial documents such as bills. if the following explanation (or expression) is correct, please indicate "True". Or, if the following explanation (orexpression) is wrong, please indicate “False”.
- . Three goods are produced in an economy by three individuals:Good ProducerApples Orchard ownerBananas Banana growerChocolate ChocolatierIf the orchard owner likes only bananas, the bananagrower likes only chocolate, and the chocolatier likesonly apples, will any trade between these three personstake place in a barter economy? How will introducingmoney into the economy benefit these three producers?To increase the money supply, the New York Fed is directed to carry out Select one: O a. discretionary lending. O b. quantitative easing. O C. O d. anopen-market sale. O quantitative tighteningA manager must determine which of two products to market. From market studies, the manager constructed the following payoff matrix of the present value of all future net profits under all the different possible states of the economy: State of the economy Product 1 Product 2 Probability Profit ($) Probability Profit ($) Boom 0.2 50 0.2 30 Normal 0.5 20 0.4 20 Recession 0.3 0 0.4 10 The manager’s utility function for money is U = 100M – M2 where U is the total utility of money (in utils) and M refers to the dollars of profit. Determine if this manager a risk seeker, risk neutral, or a risk averter. Explain your answer. If the manager’s objective was profit maximization regardless of risk (أي دون أخذ المخاطرة بعين الاعتبار), which product should the manager introduces? Explain your answer. Evaluate the risk associated per dollar of profit with each product, i.e. find the coefficient of variation for each project.…
- Asma has a credit card account with Bank Muscat. The bank is considering whether to raise Asma’s credit card interest rate. Asma can respond by moving to National bank of Oman (NBO) or do nothing. If Bank Muscat raises Asma’s interest rate and Asma does nothing, then Bank Muscat increases profit by 300 OMR while Asma receives -300 OMR. If Bank Muscat raises Asma’s interest rate and Asma transfers her account to NBO then Bank Muscat receives -150 and Asma receives 100 OMR. If Bank Muscat does nothing and Asma does nothing, then both gets 0 OMR. If Bank Muscat does nothing and Asma transfer her account to NBO then Bank Muscat receives -150 while Asma receives -75 OMR. Draw the game with the help of a tree chart. If you are a bank manager of the Bank Muscat, then what is the best strategy for you. What is the best strategy if you are helping Asma with her decision?You are in the market for a used car. At a used carlot, you know that the Blue Book value of the car youare looking at is between $15,000 and $19,000. Ifyou believe the dealer knows as much about the caras you do, how much are you willing to pay? Why?Assume that you care only about the expected valueof the car you will buy and that the car values aresymmetrically distributed.23. Refer to Problem 22. Now you believe the dealerknows more about the car than you do. How muchare you willing to pay? Why? How can this asymmetric information problem be resolved in a competitivemarket?In an OLG model with money: Each gen picks 12 banans when young, 0 bananas when old. Central bank prints out 2 units of money, given to gen 0 for free. maxCyCo Cy= 4-vm Co= 0 + vm In equilibrium, 1 money = ______ bananas.