Explain how would you incorporate security considerations/costs into the transactions demand model? What would this imply for the demand for currency in a relatively insecure urban environment (a) compared with a relatively safe one, (b) when owner- identified smartcards become available? Do these factors affect the demand for demand deposits? How would the proportion of currency to demand deposits be affected in these cases?

Explain how would you incorporate security considerations/costs into the transactions demand model? What would this imply for the demand for currency in a relatively insecure urban environment (a) compared with a relatively safe one, (b) when owner- identified smartcards become available? Do these factors affect the demand for demand deposits? How would the proportion of currency to demand deposits be affected in these cases?

ECON MACRO

5th Edition

ISBN:9781337000529

Author:William A. McEachern

Publisher:William A. McEachern

Chapter15: Monetary Theory And Policy

Section: Chapter Questions

Problem 1.1P

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9. How would you incorporate security considerations/costs into the transactions demand model? What would this imply for the demand for currency in a relatively insecure urban environment (a) compared with a relatively safe one, (b) when owner-identiﬁed smart cards become available? Do these factors affect the demand for demand deposits? How would the proportion of currency to demand deposits be affected in these cases? 10. Can the transactions demand model be used to explain why ﬁnancial innovations in recent decades have reduced the transactions demand for M1? 11. Are transactions demand models useless, as Sprenkle (1969) argued? If they are, how would you explain the demand for M1 or just for demand deposits in the economy?
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iv. The U.S. already has several ways to make digital transactions, for example, credit/debit cards, Venmo, Zelle, PayPal, and so on. How would a digital currency increase efficiency?
2. What are the main reasons for the increased total market cap for the cryptocurrencies during Pandemics? What do you expect for these markets when we wee see normalization in the economic conditions?
Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 32Deposits 205Loans 150 Securities 53Other $X Using the balance sheet above, find the level of required reserves for this bank if the required reserve ratio = 8%(Give answers to 2 decimal places as needed)
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If the bank at which you keep your checking account isowned by foreigners, should you worry that your depositsare less safe than if the bank were owned by Americans?
Pls help with below homwork, As per my calculation total deposit value will increase by $7,944.44
This is not a writing assignment, this is a multiple-choice question Which of the below statements regarding cryptocurrencies is NOT mentioned or suggested as factors that give cryptocurrencies and advantage over traditional currencies? what cryptocurrencies are, and the advantages and disadvantages of cryptocurrencies. Choose as the correct answer only the statement that is NOT suggested Group of answer choices The value of cryptocurrencies is more stable and less volatile than the international exchange rate of the U.S. dollar. Easy international business transactions because digital coins can overcome any border obstacle much faster and more easily than the traditional currency. Its reduced cost for shipments sent abroad would be a consideration for free flowing global transactions and trade.
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