what is the significance of capital and money markets?

Q: Robust economic growth shifts the transactions demand for money. Consequently, growth will tend to…

A: Economic growth exhibits that economic transections are more frequent in the economy. Thus, an…

Q: Who is in charge of the monetary policy?

A: The central bank is in charge of the monetary-policy in a country. For example, in the US, the…

Q: What is the significance of money?

A: Money is any object that is generally accepted as payment for goods and services and repayment of…

Q: An increase in the interest rate decreases the opportunity cost of holding money,

A: Opportunity costs implies the potential benefits an individual, financial investors, or business…

Q: Money is dynamic in nature how in economics!??

A: Money is the tool that is used to buy goods and services in the market.

Q: according the concepts of Islamic finance and banking ,explain 2 ways that can raise enough capital…

A: Islamic finance and banking refer to how firms and individuals respond in accordance with Sharia or…

Q: What is the monetary base the sum of?

A: The total amount of a currency in circulation in the hands of the public or the form of commercial…

Q: Is an economy both social and a financial system?

A: An economic system, also known as an economic order, is a method of producing, allocating resources,…

Q: How does the Central Bank affects the interest rate?

A: Money Supply: It is the total quantity of money in the economy at a point in time. Money supply and…

Q: What means supply of money?

A: Meaning of Exchange Rate: The term exchange rate refers to the situation under which a particular…

Q: Why would a booming economy affect the demand for money?

A: In a booming economy, it means the GDP, a low level of unemployment(U), and high inflationary gap-…

Q: Explain how money evolved over the years?

A: Money is an object that is generally accepted as payment for goods and services and repayment of…

Q: The following questions relate to Monetary Systems   What is the relationship between Factor…

A: International factor mobility is a sort of international integration and a trade in factors. The…

Q: Explain how does monetary policy affect the economy and business activities?

A: The monetary policy is the central bank's policy of money supply where central bank influences the…

Q: the government of a country increases the growth rate of the money supply from 5 percent per year to…

A: The quantity theory of money states that there is a equilibrium between the money market and good…

Q: Differentiate between the real flow and money flow

A: Money is the medium of use as a payment after purchasing the products or services.

Q: expain the Interrelationship between money markets and capital markets .give examples

A: Trading in extremely short-term debt assets is referred to as the money market.It includes…

Q: What is the role of money for Adam Smith?

A: The money is anything which is accepted by the economy and that has the ability to meet the basic…

Q: What is legal tender money plus What is fiduciary money?

A: Money: - money is an object that measures the value of goods and services in an economy and also…

Q: What is a definition of money and list 4 factors that affect the demand for money?

A: Answer is given below

Q: What is foreign finance? Give example

A: Foreign Finance is also known as international finance

Q: how is money created?

A: In economics, money is a tool or a set of assets in the economy through which goods and services are…

Q: The existence of money makes trader easier. How is it that money can also increase the standard of…

A: There was a barter system before the introduction of money, in which people used to trade goods and…

Q: How did money arise? What issues did money solve?

A: Money is the medium of exchange which is used to purchase goods and services.

Q: How does the increase of prices of goods affect the purchasing power of money?

A: Purchasing Power:-    The quantity of goods that can be purchased with one unit of a currency…

Q: Explain the opportunity cost of holding money and how does it relate to the interest rates

A: Introduction  An opportunity cost is the cost of foregone an alternatives if we choose any other…

Q: what is the role of money in the economy?

A: Money is a widely accepted mode of payment for goods and services or in the discharge of other…

Q: Give any two characteristics of money in economics?

A: According to the given question In Simple words we can say that money is considered anything which…

Q: If robin hood robs me because I am Rich, would he give me money because I am now poor?

A: Robin hood used to robbed rich and that money given to the poor people.

Q: describe how banks can create money.

A: Any commodity or item that the community accepts as payment for the goods and services is known…

Q: why is the capital market is riskier than the money market?

A: A market where buyers and sellers engage in financial securities trade such as stocks, bonds, etc.…

Q: What is money in terms of business??

A: Money can be defined as anything that is used to pay for products and services, as well as to…

Q: What is the main role of central bank in an economy?

A: The central bank that is also known as the "lender of last resort," meaning it is responsible for…

Q: Explain the concept of a surplus of money versus a shortage of money.

A: Money is a commodity that is used for transaction that involves the transfer of goods and services.…

Q: What is the supply, demand, and price of money?

A:

Q: Investment accounts operated by Islamic banks are based on the concept of: Select one: O a. hibah O…

A: Islamic finance is a type of financing activities that must comply with Islamic law which is knows…

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: Why might we not consider livestock as money, even if it could be used to trade for goods and…

A: Money is a commodity accepted by general consent as a medium of economic exchange.

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.