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: Which of the following statements represent a use of money that is not consistent with its…

A: Money is a commodity that is commonly acknowledged as a medium of exchange for goods and services.…

Q: Let's say that you have put $1,000 in your savings account at a local financial institution, and an…

A: 1.The employee is correct, of course.The reason for this is that the money you have deposited in…

Q: Developed economies are less prone to banking crises than developing or less developed economies.…

A: When talking about banking crisis, it can be said that it is the situation when banks are running…

Q: As a lender/depositor, how would you compare time to demand deposits?     Demand deposits are more…

A: Meaning of Demand Deposit: The term demand deposits refer to the situation under which an…

Q: While the government prints currency, the rest of our money is created by the banks. How do banks…

A: The mechanism of money creation is the flow of bank-to - bank reserves, with each bank using surplus…

Q: The demand for money increases when the interest rate increases. Is it true or false?

A: Demand refers to the various quantities of goods that consumers are willing to buy at different…

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 is the difference between printing money and creating money?

A: In an economy, the task of printing money is undertaken by the government. The central bank decides…

Q: Critics of federal banking policy argue that deposit insurance is a key reason for banking failures.…

A: When depositors are given confidence about their money, in case a bank fails, it is "deposit…

Q: Briefly discuss how the central bank plays the role of controller of credit in an economy?

A: Commercial banks tend to create during their course of operations a lot of credit. This credit could…

Q: Briefly discuss how the central bank plays the role of controller of credit in an economy?

A: An institution which has the power of distribution and production of money is refferd to be as the…

Q: What did they use for money back in Saladin’s day (12th century)?

A: Saladin's day refers to the time period during which Saladin, also known as Salah ad-Din Yusuf ibn…

Q: The inadequacy of money supply circulating or available in the financial system makes the trading of…

A: International trade agreements govern the exchange of goods and services between two or more…

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: Why is money necessary in an economy? What are its functions and how is it created?

A: Money is the source which helps in buying goods and services. It works as a medium of exchange which…

Q: many people keep their savings in the piggy banks, it does not help the financial system to function…

A: Banks and other financial institutions give amazing chances to saving and contributing by people,…

Q: The pandemic has impacted the use of currency in our economy. Explain in your own words, how the…

A: The number result is associate degree economic phrase that refers to the proportional increase or…

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: True or false:  Banks can help "create" money. True False

A: Banks have several functions apart from accepting deposits from the public. For example, banks lend…