Which of the following is a primary function of money? * a. to reduce the burden of excessive imports b. to serve as a unit of account c. to serve as an encouragement to work d. to raise funds for the government

Q: (a) Since our fiat money is not backed by any commodity and does not have any intrinsic value,…

A: Monetary policy is the actions and policies used to control the money supply in the market.

Q: How does commodity money differ from fiat money? Discuss with an example of each.

A: Fiat Money refers to the currency which is a legal or declared legal tender by the government. This…

Q: Based on the equation of exchange, if nominal GDP is $550 billion and the velocity of money is 5,…

A: The equation of exchange can be written as follows:

Q: Whatvis the money flow

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: Money is created when  A. a depositor deposits money at the bank. B. a bank grants a loan to a…

A: Money is something that is accepted as medium of exchange . It can be also be stored and act as…

Q: The case talked about money, what type(s) of money islare mentioncd in the case? Bone money O…

A: Money is a resource or asset that is accepted and used as an exchange medium to buy commodities and…

Q: Show and explain the effects of an increase in Money supply in money market.

A: An increase in Money Supply is also termed as Expansionary Monetary policy. Suppose, the money…

Q: How do investments move if the money supply increases? A) Demand for money falls B) Investments…

A: The relation between money supply and investment spending is positive

Q: t is money for in terms of finance

A: Finance is the management of money, it includes all kinds of investments, borrowing, and lending.…

Q: Briefly explain different stages in the development of money?

A: Different stages of development of money are: Commodity money: In the earliest of times, there was…

Q: Give 3 advantages of using checks to pay for goods and services instead of physical coins and…

A: Answer - Advatages of using check - 1. Easy to carry - The checks are much easier to carry compare…

Q: Explain the four functions of money?

A: Medium of Exchange    One of the most important primary functions of money is that it acts as a…

Q: Why do people demand for money? Discuss the different motives of holding money.

A: The demand for money is termed as to how many assets a person wishes to hold in the form of money…

Q: In the United States today, what “backs” our money (gives it value)? ​A. Gold in the Department of…

A: Money is the medium of exchange that we used to exchange goods and services.

Q: Explain how banks create money.

A: Answer - Bank - Banks are the financial institutions . they have many functions such as deposition…

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: Explain any two components of money supply flowing in an economy?

A: According to the given question Supply of money basically refers to the circulation of the money…

Q: What's the role of the money in the economy?

A: Money is something that is used to make payments for the commodities purchased or to repay the debts…

Q: Explain central bank money and bank money. Why are they different and how are they created?

A: The Central Bank is the prime bank of any economy since without it there would exist no institution…

Q: Trace the development of money (a) barter (b) commodity and (c) fiat money, explain the role of…

A: In a transactional economy, money is an economic unit that acts as a commonly acknowledged method of…

Q: State the role of money in the economy

A: When talking about money in economics, it plays a vital role in making an effective exchange of…

Q: Question No.2 (a) Define the term “money”. (b) List and describe the four functions of money.

A: Money is a medium that is used by the individuals in the economy to accept it for the exchange of…

Q: Which of the answer choices best illustrates the unit of account function of money? a. Café Britt…

A: Money is a resource or asset that is accepted and used as an exchange medium to buy commodities and…

Q: Explain the role of money in society

A: Explain the role of money in society.

Q: Explain how banks create money using your own example of a T-account.Define the deposit and RRR…

A: A deposit is a term used in finance to describe money deposited in a bank. A deposit is a financial…

Q: What are the functions of money?

A: The functions of money are: 1. Store of value 2. Medium of exchange  3. Unit of account 4. A…

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

A: Answer is given below

Q: Function of money

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

Q: Discuss the various functions of money

A: Money is used as a medium of exchange.One can buy and sell goods due to money.Money makes the market…

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: a) Describe our society at present if it doesn’t use money. b) How the transactions would be if…

A: Money: It refers to the cash used by the people for doing the various transaction in an economy.…

Q: Which of the following statements relates to the Unit of Account function of money? O Money…

A: Unit of account means valuing goods and services in money. Ex. price tags.

Q: Why do you think politicians pursue policies that lead to hyperinflation?

A: Hyperinflation is a phrase used to characterise an economy's rapid, out-of-control overall price…

Q: The economy of Moneyland contains 5000 $1 bills. a. If people hold equal amounts of currency and…

A: a)5000

Q: Discuss the concept of money from the perspective of a consumer and an investor.

A: Money is anything which is generally accepted s a means of exchange and medium of value while buying…

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 are the three basic functions of money? Describe how rapid inflation can undermine money’s…

A: Money is accepted and generalized form of acceptance in relation to transactions made. The money…

Q: Define the components of money and it's measurements?

A: Money- a medium of exchange used in transactions made for good & services. It reduces double…

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: Which of the following are money in the Malaysian Economy? Which are not? Explains your answers by…

A: The three functions of money need to be satisfied. A medium of exchange is the function of a…

Q: Answer the following:   2. Which of the following is the MOST valid assumption about money? * A.…

A: Introduction 2) The most valid assumption about money is option A) Money alters individuals…

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.