According to Lawrence White in "How Common Has Private Currency Been?" The private sector can produce bank deposits but the State has always been in charge of producing currency (coins and banknotes). True or Fals

Q: what is the benefit if the commercial banks create new money?

A: Money refers to the economic unit that is used to make exchanges and to set the value of any…

Q: Use the bank balance sheet to answer the questions: Assets Total Reserves Loans Treasury Bonds…

A: ***Since the student has posted a question with multiple subparts, the expert is required to solve…

Q: Why do we permit governments to be in charge of money?

A: The economies tend to work majorly upon the basis of the working of the markets. The markets help in…

Q: "Money is debt."  Critically evaluate.

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

Q: How does the central bank control the money supply and interest rates to influence the economy?

A: The objective of the question is to understand the role of a central bank in controlling the money…

Q: Briefly explain how banks can optimize their position through managing their use of commodities?

A: The banking sector is undergoing a significant transformation, fueled by new competition brought on…

Q: A main difference between using cigarettes and using dollars as money is that    have intrinsic…

A: Intrinsic value : The inherent value of an object or commodity that is not based on its monetary or…

Q: Despite the fact that personal possession of currency is not allowed by U.S. prisons, in reality,…

A: Money is a specific term used to describe the worth of products and services. It serves as the…

Q: n economic terms, define what money is.

A: When it comes to economics, money is a commonly used means of exchange for the trade of goods and…

Q: Stephanie deposits $500,000 in Bank of America. Assuming that banks lend out everything that they…

A: Total Deposit = $500,000Required Eeserve = 14%Intrest rate = 2%

Q: Personal possession of currency is prohibited in U.S. prisons, although, in practice, prisoners…

A: Intrinsic value is a measure of what an asset is worth. Intrinsic value of money refers to the…

Q: Suppose there are $1000 of reserves in the banking system. Assume that banks are required to hold 5%…

A: Required reserves are the minimum amount of reserves that must be held by the commercial banks to…

Q: What are the main functions of banks? Explain the role played by commercial banks in the economic…

A: Function of commercial banks:-  Primary Functions 1) Accepting deposits:- Primary function of…

Q: make many small loans. d. Through the checking accounts they facilitate, banks

A: A bank is a financial institution being licensed in order to receive deposits and also make loans.…

Q: what is a centeral bank

A: A central bank is an institution which is given authority of controlling over all the financial…

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: European banks began with which of the following? a) Monarchs were the first bankers, lending out…

A: A bank is a financial institution licensed to receive deposits and make loans.

Q: “When a commercial bank makes loans, it creates money; when loans are repaid, money is destroyed.”…

A: Bank balance sheet indicates the liabilities, assets and bank capital, of a bank.  Identity of bank…

Q: Despite the fact that personal possession of currency is not allowed by U.S. prisons, in reality,…

A: 1) Fiat money - it is not backed by any commodity and is declared as a legal tender by  government…

Q: Use the following example to answer the questions that follow: Imagine that you deposit $25,000 in…

A: Reserve ratio calculates the amount of deposits that the banks are liable to keep as cash. The rest…

Q: How to transfer funds from one bank to another bank?

A: Banks are important institutions. They are the backbone of economic growth. Banks are institutions…

Q: What is the effect of money laundering in the economy? Explain your answer.

A: Money laundering refers to the illegal process of making large amounts of money, usually generated…

Q: the bank makes small loans (known as microcredit) to the impoverished without requiring collateral.…

A: Financial entities that accept customer deposits and lend them to borrowers for investments are…

Q: "People are poor because they don't have very much money. Yet, central bankers keep money scarce. If…

A: Money supply is the total money circulated in the economy in a given period of time. The central…

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: How are cryptocurrencies popular nowadays (such as bitcoins) different from the currencies we used…

A: A cryptocurrency is a digital or virtual currency that is encrypted to prevent fraud and…

Q: What is fiat money? Give some examples.

A: Fiat Money refers to the currency that has legal tender by the decree of the government and is not…