Money Supply: It is defined as the quantity of money which are present in the economy at a point of time. There are various components of money like currency, demand deposit, saving deposits, money with central bank, travellers’cheque, short term deposits, long term deposits, time deposit, t-bills and so on.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 15, Problem 1QFT

To determine

Concept Introduction:

Money Supply: It is defined as the quantity of money which are present in the economy at a point of time. There are various components of money like currency, demand deposit, saving deposits, money with central bank, travellers’cheque, short term deposits, long term deposits, time deposit, t-bills and so on.

Expert Solution & Answer

Answer to Problem 1QFT

PP account is not considered as the money supply component and they should not be included.

Explanation of Solution

PP account should not be considered as a part of money supply because of following reasons:

The amount of money they hold comprise of very less percentage of total amount of money in the economy.
If conventional banks are granted with the responsibility of mobile payments and other related transactions then they would handle more efficiently than these companies.
The interest rate provided by them is almost zero and there is no Federal Reserve insurance for the users.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 2

Question

Chapter 15, Problem 1QFT

To determine

Concept Introduction:

Money Supply: It is defined as the quantity of money which are present in the economy at a point of time. There are various components of money like currency, demand deposit, saving deposits, money with central bank, travellers’cheque, short term deposits, long term deposits, time deposit, t-bills and so on.

Expert Solution & Answer

Answer to Problem 1QFT

PP account is not considered as the money supply component and they should not be included.

Explanation of Solution

PP account should not be considered as a part of money supply because of following reasons:

The amount of money they hold comprise of very less percentage of total amount of money in the economy.
If conventional banks are granted with the responsibility of mobile payments and other related transactions then they would handle more efficiently than these companies.
The interest rate provided by them is almost zero and there is no Federal Reserve insurance for the users.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 15, Problem 1QFT

To determine

Concept Introduction:

Money Supply: It is defined as the quantity of money which are present in the economy at a point of time. There are various components of money like currency, demand deposit, saving deposits, money with central bank, travellers’cheque, short term deposits, long term deposits, time deposit, t-bills and so on.

Expert Solution & Answer

Answer to Problem 1QFT

PP account is not considered as the money supply component and they should not be included.

Explanation of Solution

PP account should not be considered as a part of money supply because of following reasons:

The amount of money they hold comprise of very less percentage of total amount of money in the economy.
If conventional banks are granted with the responsibility of mobile payments and other related transactions then they would handle more efficiently than these companies.
The interest rate provided by them is almost zero and there is no Federal Reserve insurance for the users.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 15, Problem 1QFT

To determine

Concept Introduction:

Money Supply: It is defined as the quantity of money which are present in the economy at a point of time. There are various components of money like currency, demand deposit, saving deposits, money with central bank, travellers’cheque, short term deposits, long term deposits, time deposit, t-bills and so on.

Expert Solution & Answer

Answer to Problem 1QFT

PP account is not considered as the money supply component and they should not be included.

Explanation of Solution

PP account should not be considered as a part of money supply because of following reasons:

The amount of money they hold comprise of very less percentage of total amount of money in the economy.
If conventional banks are granted with the responsibility of mobile payments and other related transactions then they would handle more efficiently than these companies.
The interest rate provided by them is almost zero and there is no Federal Reserve insurance for the users.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 15, Problem 1QFT

To determine

Concept Introduction:

Money Supply: It is defined as the quantity of money which are present in the economy at a point of time. There are various components of money like currency, demand deposit, saving deposits, money with central bank, travellers’cheque, short term deposits, long term deposits, time deposit, t-bills and so on.

Expert Solution & Answer

Answer to Problem 1QFT

PP account is not considered as the money supply component and they should not be included.

Explanation of Solution

PP account should not be considered as a part of money supply because of following reasons:

The amount of money they hold comprise of very less percentage of total amount of money in the economy.
If conventional banks are granted with the responsibility of mobile payments and other related transactions then they would handle more efficiently than these companies.
The interest rate provided by them is almost zero and there is no Federal Reserve insurance for the users.

Answer 6

Chapter 15, Problem 1QFT

To determine

Concept Introduction:

Money Supply: It is defined as the quantity of money which are present in the economy at a point of time. There are various components of money like currency, demand deposit, saving deposits, money with central bank, travellers’cheque, short term deposits, long term deposits, time deposit, t-bills and so on.

Expert Solution & Answer

Answer to Problem 1QFT

PP account is not considered as the money supply component and they should not be included.

Explanation of Solution

PP account should not be considered as a part of money supply because of following reasons:

The amount of money they hold comprise of very less percentage of total amount of money in the economy.
If conventional banks are granted with the responsibility of mobile payments and other related transactions then they would handle more efficiently than these companies.
The interest rate provided by them is almost zero and there is no Federal Reserve insurance for the users.

Answer 7

Chapter 15, Problem 1QFT

To determine

Concept Introduction:

Money Supply: It is defined as the quantity of money which are present in the economy at a point of time. There are various components of money like currency, demand deposit, saving deposits, money with central bank, travellers’cheque, short term deposits, long term deposits, time deposit, t-bills and so on.

Answer 8

Expert Solution & Answer

Answer to Problem 1QFT

PP account is not considered as the money supply component and they should not be included.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

PP account should not be considered as a part of money supply because of following reasons:

The amount of money they hold comprise of very less percentage of total amount of money in the economy.
If conventional banks are granted with the responsibility of mobile payments and other related transactions then they would handle more efficiently than these companies.
The interest rate provided by them is almost zero and there is no Federal Reserve insurance for the users.

Answer 12

Ch. 15.A - Prob. 1P Ch. 15.A - Prob. 2P Ch. 15 - Prob. 1QFT Ch. 15 - Prob. 2QFT Ch. 15 - Prob. 1P Ch. 15 - Prob. 2P Ch. 15 - Prob. 3P Ch. 15 - Prob. 4P Ch. 15 - Prob. 5P Ch. 15 - Prob. 6P

Answer to Problem 1QFT

Explanation of Solution

Want to see more full solutions like this?

Chapter 15 Solutions