Which function of money facilitates buying and selling of goods? a. Distribution function b. Medium of exchange function c. Unit of account function d. Store of value function
Q: If a wealthy person writes a check to purchase a new car, he is employing money as _______. a. a…
A: In the above transaction money performed the function of Medium of exchange Medium of Exchange –…
Q: In the money market when the money supply is increased, the interest rate falls by ________ when the…
A: When all other factors are equal, a increase in money supply decreases the market interest rates.…
Q: Paper currency is (a) Convertible (b) Partially convertible (c) Inconvertible (d) Both convertible…
A: # paper currency e is the most liquid form of money available in the financial market or the money…
Q: In the 1970s, in response to recessions caused by an increase in the price of oil the central banks…
A: The monetary policies are used by the central bank to achieve certain economic goals. The main…
Q: This searching is unnecessary with money which refers to the set of assets in an economy that people…
A: The term double exchange of wants means the situation where both the parties to trade agree to trade…
Q: When the price of slaves was quoted in cows and brass rods in Nigeria, which function of the money…
A: Answer: The money functions as a medium of exchange, store of value, unit of account, etc. Here,…
Q: When a bank takes savings from many small savers and lends it to many borrowers, the bank…
A: The primary role of banks is to act as intermediaries between lenders and borrowers. Banks take in…
Q: Suppose the households keep some cash aside in banks to use in case of emergencies. Which function…
A: Money is anything that is used as a medium of exchange for goods and services, store of value and…
Q: Which of the following would be classified as monetary policy? O The federal government cuts taxes…
A: A monetary policy is the policy used by the central bank to change the money supply in the economy…
Q: Which statement is not correct? A. Money is a legal tender since the law requires a lender to…
A: Money refers to the economic unit that is generally accepted medium of exchange. It simple words,…
Q: Calculation of output: the case of banks -The following are the simplified data for a bank in…
A: Value of output = foreign exchange commission +stock market trading commission +interest received…
Q: Money is not an economic resource because: a. Money, as such, does not produce anything. b.…
A: According to economic definitions, money is a good that acts as a store of value and a means of…
Q: First, explain the concepts of income, wealth, credit and money and show how each is related to the…
A: The five terms have been asked to describe, so here is the answer: 1. Income is the money that a…
Q: Write a post that explains why money is not the universal measure of all value.
A: Money is the major consideration for all the people in today’s world. Without money the people…
Q: (a) Carefully explain and illustrate uusing a agraph the effect of this decrease in economic…
A: Economic activities are decreased during the covid-19 for the protection of the people in terms of…
Q: Which of the below statements DOES NOT CORRECTLY capture the meaning of the word "money" as…
A: Money is anything that serves as a medium of exchange, a unit of account, and a store of value
Q: Indicate whether each of the following statements is True or False. In each case, give a brief…
A: 1 Technology is always treated as a factor of production in economic theory. 2 An important aspect…
Q: The demand for liquid cash in the economy is based on _____________ Select one: a. Interest rates…
A: Answer: c. All of the above Demand for money is desired for holding financial assets in the form of…
Q: money market
A: LM curve depicts the “Liquidity preference-Money supply”, it is the money market equilibrium. It…
Q: #27. Identify two examples of commodity money. #28. The U.S. dollar is an example of fiat money.…
A: Money is an economic instrument that is defined by its primary function i.e. to act as a medium of…
Q: Which of the following statements is false A. Money is not a comsumption or a capital good B. An…
A: Capital goods:The capital goods are those goods that are used in the production process and reported…
Q: Explain the following lines taken from the selection, Imagination and Reality by J. Winterson: .”…
A: Money culture can't stand craftsmanship. In this world, we want to realize what we're getting, while…
Q: What is the difference in goals or endpoints between the circulation of commodities and the…
A: In a market, capital is the term that is used to define the assets requited for making operating…
Q: Why is it said that money is as money does? Does the Pakistani rupee perform all functions of money?…
A: The following problem has been answered as follows:
Q: What is the equation of exchange? What are the variables, which are in it, and how do they relate to…
A: The equation of exchange was postulated by a famous economist named Irving Fisher. The Economist…
Q: What is the Equation of Exchange presented in the form of an Identity?…
A: The equation of exchange is used to represent the relationship between money supply, velocity of…
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: Please answer ASAP this is a very short question Before the Civil War, _____, not the U.S.…
A: Before the Civil War US government did not print money.
Q: Which of the following is not considered a primary function of money? Medium of Exchange Measure of…
A: Money is defined as an economic unit which is recognized as a medium of exchange for purchasing…
Q: Which of the following statements about money aggregates is true? A. M2 money includes all types…
A: An aggregate of the money assets in the economy at a given point of time is commonly known as the…
Q: IS curve shows: (a) that realized savings are most likely a function of interest rates, because…
A: IS is negative sloping curve that shows inverse relationship between interest rate and income/output…
Q: - Which of the following is not one of the characteristics or properties that make something…
A: Money is not divisibleto be used as money.
Q: The use of money as a unit of account: a. relies on the existence of a double coincidence of…
A: Money is referred to as something which is generally accepted by people in exchange for goods and…
Q: When money is used as medium of exchange A. the need for a barter system diminishes B. the cost of…
A: In an economy, when money is used as the medium of exchange, it is the situation when purchasing a…
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: In a less-developed economy, cattle is widely accepted as payment for goods and services. Nearly all…
A: The money is a medium of exchange which is used as a payment for the purchase of various goods and…
Q: Money is used as a means to make a payment, store of value (savings), and place value on goods and…
A: a) Money is defined as a medium of exchange, which performs the functions as follows: Medium of…
Q: Describe the Circular Flow Model and the Circular Flow of Payment in 2 and 3 Sector Economy in…
A: Describe the Circular Flow Model and the Circular Flow of Payment in 2 Sector Economy in Detail with…
Q: Consider a closed economy where the goods and money markets are described by the following…
A:
Q: According to the principle of monetary neutrality, which variables are affected by changes in the…
A: Nominal variables refer to variables that are measured in monetary units, whereas, real variables…
Q: By using graphs, show and explain how an increase in money supply can affect the goods market by…
A: An increase in money supply will shift the aggregate demand curve to right. Increase in money supply…
Q: Consider a closed economy where the goods and money markets are described by the following…
A:
Q: Task 3 Consider a closed economy where the goods and money markets are described by the following…
A:
Q: Which of the following is one of the most important benefits of money in a modern economy? A.…
A: Answer 1) In today's modern economy money help us to evaluate the cost of goods and services that we…
Q: Why did british soldiers in German prisoner of war camps in WW1 smoke the best cigarettes and use…
A: In world war 1, there were social and economic problems. Due to war, people were facing lot of…
Q: Financial capital includes Q A. money, stocks, and bonds, which are capital because they provide…
A: Answer: Financial capital refers to the money, stock, bonds, and other sources of funding that…
Step by step
Solved in 2 steps
- Imagine you have R1,000 in cash, and you deposit this money into a savings account at a bank. Whatfunction of money is this action demonstrating?A. Medium of ExchangeB. Unit of AccountC. Store of ValueD. Measure of Value- Which of the following is not one of the characteristics or properties that make something appropriate to be used as money? Divisible Portable Recognizable Investible DurableAnswer this question in no more than 5 sentences. Why is it necessary for money to possess the necessary attributes that qualify it as “good money”?
- In the money market, the y axis of the coordinate plane is which variable below? a.Interest rate b.Wage c.Price d.Velocity of moneyThe given table indicates the transactions for one teller for one day. Letting C represent "cashing a check" and D represent "making a deposit," express P(C′|D′)in words and find its value.First, explain the concepts of income, wealth, credit and money and show how each is related to the other and explain the concept of the monetary base and indicate its economic significance.
- Which function of money is in each of the following cases demonstrating? (1) You pay $10 for a movie ticket. (2) You deposit your tax refund check in your saving account. (3) A restaurant manager sets the prices of meals she serves in dollars. (4) A restaurant manager places the day's receipts in the safe. (5) McDonald's announces that a Big-Mac now costs only $1.00. (6) Bill Gates has a net worth of $50 billion.Which function of money is in each of the following cases demonstrating? (4) A restaurant manager places the day's receipts in the safe. (5) McDonald's announces that a Big-Mac now costs only $1.00. (6) Bill Gates has a net worth of $50 billion.. P’Dim and P’Green discusses the use of cowrie shells as money. Although cowrie shells are no longer used as money, do you think other forms of commodity monies are possible? What role might technology play in our definition of money?
- Suppose a credit market with good borrowers and 1−a bad borrower. The good borrowers are all identical and always repay their loans. Bad borrowers never repay their loans. Banks issue deposits that pay a real interest rate r, and make loans to borrowers. Banks cannot tell the difference between a good borrower and a bad one. Each borrower has collateral, which is an asset that is worth A units of future consumption goods in the future period. Determine the interest rate on loans made by banks. How will the interest rate change if each borrower has more collateral?What is money? Explain the definition in terms of the functions of money?When a bank takes savings from many small savers and lends it to many borrowers, the bank a.increases the risk to borrowers through high transaction costs. b.decreases the return to savers and increases the cost to borrowers. c.decreases the risk to savers through diversification. d.decreases the risk to savers through economies of scale.