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True or false:
Banks can help "create" money.
True
False
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- Monetary policies are implemented to control the public's access to money and credit, depending on its purpose, it could either make access easy or restricted. *TRUE or FALSE?identify and briefly explain the three specific funtions of money that economists identifiedOne way that money creation occurs in our current system is when A person deposits a helicopter stimulus check into their savings account at their local bank. The Federal Reserve makes loans directly to borrowers based on their social credit scores. The Federal Reserve decreases the FFR and increases the reserve requirement. 4. Banks stimulate more debt creation making loans to borrowers equal to excess reserves.
- How does the textbook money creation model differ from the real world money creation model? What’s wrong about the way that most people think banks work?discuss the situation during pandemic in Canada, and discuss how monetary policy was used to correct the recession during pandemicExplains it correctly Money such as Money Demand, Money Creation and banking, Monetary and Fiscal Policy. Explains all correctly not copy paste from anywhere goods
- The demand for money has fallen during the Covid-19 pandemic TRUE / FALSE During times of economic uncertainty people hoard cash. TRUE / FALSEA decrease in money demand is likely to: Multiple Choice increase interest rates. decrease money supply. decrease Real GDP. increase nominal output.In many countries, people hold money as a cushion against unexpected needs arising from a variety of potential scenarios (e.g.,banking crisis, natural disasters, health problems, unemployment, etc.) that are not usually covers by insurance markets. Explain the effect of such behavior on the precautionary component of the demand for money?
- what kind of monetary policy can be used to fight against recession and depressionDuring financial crisis, BSP buys bonds in the commercial banks to increase money supply. True False When the rediscount rate rises, this gives more opportunity for the commercial banks or universal banks to borrow money from the BSP. True FalseWhy did inflation targets replace monetary targets as the most widely used strategy for monetary policy in advanced economies? 100-150 words