- What are
demand deposits and why should they be included in the stock of money? (Word count: 100 words max.)
2. Explain whether each of the following events increases or decreases the money supply.
a.The State Bank of Pakistan sells bonds in open-market operations.
b.The State Bank of Pakistan increases the reserve requirement.
c.The State Bank of Pakistan reduces the interest rate it pays on reserves.
d.MCB Bank repays a loan it had previously taken from the State Bank of Pakistan.
e.After a rash of pickpocketing, people decide to hold less currency.
f.Fearful of bank runs, bankers decide to hold more
Hello, thank you for the question. Since there are multiple questions asked here, only the first question will be answered and if you need an answer to other question, please repost the question.
Money is anything which is accepted as payment to the goods and services from a market. It act as a medium of exchange, store of value and unit of account.
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