Explain the differences between commodity money and fiat money. What are the major disadvantages of commodity money?

Q: What are the three functions that a commodity must fulfill to be useful as money?​13.​Why can’t food…

A: A barter system is a way of exchanging goods and services. This method has been in use for decades,…

Q: Write and explain the functions of money.

A: Money: It is anything which is widely accepted in exchange of goods or discharge of other kind of…

Q: Write an essay about: How is money created in an economy? What is ‘fiat money’ and are holders of…

A: Money functions as a store of value, a unit of account, and a medium of exchange. People are able to…

Q: Explain the main characteristics of money?

A: Money refers to a commodity that is accepted as a medium of exchange. Generally, it is in the form…

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: What is commodity money? What is fiat money?Which kind do we use?

A: Commodity money is kind of money has an intrinsic face value, its value comes from the material from…

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: 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: Money can be used to transfer purchasing power from the present to the future. Which specific…

A: Meaning of Money: The term money is all about the transaction (in terms of cash) or it can be…

Q: Explain the role of money in society

A: Explain the role of money in society.

Q: use a diagram to illustrate the demand and supply of money

A: Money: Money is a commodity which is generally accepted as medium of exchange for all goods and…

Q: #27. Identify two examples of commodity money. #28. The U.S. dollar is an example of fiat money.…

A: Money is an economic instrument that is defined by its primary function i.e. to act as a medium of…

Q: Explain with graph and economic solution Why credit card is not defined as money?  How online…

A: "Since you have asked multiple questions, we will solve the first question for you. If you want any…

Q: ays.

A: Digital money is a currency that exists purely in digital form or electronic form but not in…

Q: What is money? Explain the definition in terms of the functions of money?

A: Money is anything that is generally accepted by the people in the economy and used for the purchase…

Q: Discuss the role of money over time.

A: Hi, thanks for the question. As per the guidelines we are allowed to first question. If you want the…

Q: Explain the concept of Commodity Money

A: Money is a liquid asset used to settle transactions. It works on the basis that its value is…

Q: What is money? What are the functions of money? What items may serve as money?

A: "Since you have asked the question with multiple subparts, we will solve the first three subparts…

Q: Can you describe the functions of money?

A: Money is something which is socially appropriate as a medium of exchange and can be transformed into…

Q: THREE (3) types of demand for money.

A:

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: What are the defects of Indian money market?

A: The money market is a group of institutions, traditions, and conventions created to facilitate…

Q: Complete each of the following sentences: a product that serves both as money and as a commodity is

A: Money has a major component in the living things of most people. The more money a person makes, the…

Q: How does money overcome the problem of bottle system explain!

A: note:- I guess it is a barter system instead of a bottle system, so the answer below is based on how…

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…

IS-LM-PC Analysis

The IS (Investment Saving), LM (Liquidity Preference- Money Supply), and PC (Philips Curve) is the model that looks at the dynamics of output and inflation. It takes into account the central bank policy decision to adjust the inflation and real interest rate in the economy. It enables the economist to weather to priorities between employment and inflation rate analyzing the model. It is a practice-driven approach adopted by economists worldwide.  

IS-LM Analysis

The term IS stands for Investment, Savings, and LM stands for Liquidity Preference, Money Supply. Therefore, the term IS-LM model is known as Investment Savings – Liquidity preference money Supply. This model was introduced by a Keynesian macroeconomic theory which shows the relationship between the economic goods market and loanable funds market or money market. In other words, it shows how the market for real goods interacts with the financial markets to strike a balance between the interest rate and total output in the macroeconomy. This particular model is designed in the form of a graphical representation of the Keynesian economic theory principle. The output and money are the two important factors in an economy.