the total amount of us currency in circulation divided by the us population comes out to about 3500 per person. that is more than most of us carry where is all the cash.

Q: Calculate the value of currency with public if M1 is $1,55,612 , demand deposits is 68,000 and other…

A: The information being given is as follows:- M1 = $1,55,612  Demand deposit = 68,000 Other deposit…

Q: If the desired reserve ratio in a country is equal to 5% and the cash drain ratio is 30%, a deposit…

A: Required reserves is the portion of the deposit money that the commercial banks are required to keep…

Q: Why (not how) did money evolve out of a barter economy?

A: A market system with exchange of goods and services with goods and services is known as barter…

Q: In ancient Greece, why was gold a more likely candidate for use as money than wine?

A: Money is something which is has a general acceptability and is a common medium of exchange to buy…

Q: If the required reserve ratio is 9% and you deposit $715 of cash into a bank, what is the maximum…

A: The deposit multiplier is the inverse of the Required reserve ratio

Q: Which of the following is NOT included as M1 money?   A. Currency   B. Travelers checks…

A: Based on the liquidity the monetary authority defines the money. M1 money comprises very liquid…

Q: How do representative and credit money compare to commodity money

A: Representative money includes paper and coins. Credit money includes bonds and credit cards.…

Q: Money is: the same as income. anything that is commonly accepted as medium of…

A: Money is a commodity is used to conduct daily transactions of goods and services. Money can be in…

Q: The total amount of U.S. currency in circulation divided by the U.S. population comes out to about…

A: The aggregate volume of money available in an economic region at a point in time constitutes its…

Q: Which of the following characteristics is true of paper currency? O It is the only type of money…

A: In an economy, money is exchanged in different forms such as paper money, coins, pr other monetary…

Q: Which of the following functions of money is not standardized, meaning there is no system of value…

A: A system of value is in place then goods and services are valued (standard of account) and exchanged…

Q: Which of the following is not counted in​ M2?   A. U.S. Savings account balances   B. U.S. Checking…

A: M2 = M1 + saving deposits with banks M1 = Coins and currency in circulation +checking account…

Q: What are some measures to remove the defects of Indian money market?

A: Introduction - When compared to advanced markets such as New York and London Money Markets, the…

Q: According to the table to the​ right, the value of M1 is   A. ​$1,313 billion.   B. ​$1,888 billion.…

A: For this question, first we look at the definition of M1 measure of money supply. M1 or narrow money…

Q: Calculate the value of M2 given that the M1 measure of money supply is $85,000 and saving deposit…

A: The data presented in the question is:- M1 measure of money supply = $85,000 Savings deposit with…

Q: What is commodity money? What is fiat money?Which kind do we use?

A: Commodity money is kind of money has an intrinsic face value, its value comes from the material from…

Q: Money supply can be ________ by the central bank ___________ government securties

A: The money supply refers to all of a country's currency and other liquid assets on the measurement…

Q: Calculate M1 if:- Currency with public = $23,000 Demand deposit = $11,000 Other deposit with RBI…

A: The data presented in the question above:- Currency with public = $23,000   Demand deposit = $11,000…

Q: The type of currency in circulation in the r O metallic money O commodity money silver certificates…

A: Definition: The US economy is a mixed economy. It works as per a monetary framework that describes…

Q: Calculate the initial deposit if total money creation is $25,000 and the legal reserve ratio is 18%

A: The information being given is:- Total money creation in the economy = $25,000  Legal reserve ratio…

Q: M1 includes currency, checkable deposits, and traveler's checks, but M2 does not include M1 in any…

A: False. M2 includes M1 along with savings and time deposits,  money market funds and certificates of…

Q: Anything can be money if it acts as aa. unit of account.b. store of value.c. medium of exchange.d.…

A: The money demand curve shows the inverse relationship between interest rate and quantity of money…

Q: creation of in new money (M1). Again, do not include the initial deposit in the

A: What is a money multiplier? As we know that commercial banks lend their excess money as a loan to…

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: Money: Only has a function of a medium of exchange represents banknotes, coins, deposits, money…

A: The need of double coincidence of wants is easily avoided by the use of money. It has removed the…

Q: is an object in use as a medium of exchange, but which also has a substantial value in alternative…

A: Money- It is a medium of exchange that includes paper money, coins, and demand deposits.

Q: what are the changes in deposits, currency holdings and money stock for an open market sale of…

A: We need to find out the impact of an open market sale of $1,00,000 on Deposits Currency holdings…

Q: Answer in no more than 5 sentences. In your opinion, which is more convenient for you to use:…

A: Cash: Cash is a bill that is used to acquire any good or service. Cash can be in the form of coins…

Q: When you take a vacation and keep cash with you in case you might need it, money is serving as a:…

A: Money consists of paper currency and plastic coins which are considered to be a legal tender of…

Q: Distinguish between commodity money and fiat money

A: "Money act as a medium of exchange, store of value, a unit of account and a standard of deferred…

Q: Which of the following could not be used as commodity money A. Gold coins B. Camel cigarettes C.…

A: The US currency is not used as commodity money because commodity money is the money that also has…

Q: A P25,000 price tag on a new cellphone is an example of money as * a. a unit of account. b. a store…

A: Money refers to anything that gets widely accepted to carry out transactions.

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: Money as a means of payments refers only to: Answer a. Actual currency b. Coins and currency c.…

A: Money is a medium of exchange and it allows people to get what they want.

Q: What is Fiat Money

A: The value of currency notes and coins is derived from the guarantee provided by the issuing…

Q: Why is simply counting currency an inadequate measureof money?

A: In the field of economics, money is defined as an economic unit that works as a generally recognized…

Q: What is the currency deposit rat

A: The total money stock of an economy is the sum total of the currency held by the public and…

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: K NSERERIKIE THEENETER SENEES OF AMERƯA 12 Representative Money Commodity currency Fiat Currency…

A: Answer in step 2

Q: Why can fiat money be successfully used as a currency despite the fact that it has no intrinsic…

A: The money of any type, when used or circulated as a means of trade, particularly rotating notes and…

Q: If ours were a barter economy, how would you pay your tuition bill? What if your college did not…

A: The system in which one commodity is exchanged for another commodity is known as barter system.

Q: Commodity money is a form of currency in which the value of the currency comes from the material of…

A: Commodity value is the value of money which comes from commodity it's made of. Example : Gold and…

Q: Which of the following is effective? A) Checks issued in foreign currency B) Foreign currencies in…

A: The currencies and the various notes would result in the addition to the money supply in the…

Q: Money as a means of payments refers only to: a. Actual currency b. Coins and currency c. Coins,…

A: Money is a mean of exchange in the form of coins and notes, it is generally accepted as a payment…

Q: Disscuss currency swap with example.

A: Currency swap occurs when two people share the same sum of money in different currencies. It's…

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.