In defining money as M1 economists exclude time deposits on the grounds that _________.  a. the intrinsic value of time deposits is nothing. b. the purchasing power of time deposits is much less stable than that of demand deposits and currency. c. they are not directly or immediately a medium of exchange. d. they are not recognized by the government as legal tender. e. They are quantitatively negligible as compared to checkable deposits.

Q: The central bank of your assigned Caribbean country decides to pursue an expansionary monetary…

A: To strengthen an economy, a central bank will use expansionary monetary policy.

Q: suppose the diffrence between the transaction velocity and the income velocity of circulation of…

A: The number of times a dollar is used for a transaction is known as transaction velocity. Income…

Q: 1) List any two (2) characteristic of money. 2) State any two (2) reasons why e-monies are…

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

Q: When in US you notice that prices are posted in dollars. This best illustrates money's function a…

A: Money is generally accepted medium of exchange which helps in the purchase of goods and services.

Q: Why are notice deposits not included in the M1 definition of money? a.Because the real value of…

A: Notice deposit is a type of fixed deposit from which withdrawl can be made after permission granted.

Q: Which combination is correct? A) money multiplication process is theoretically unlimited, if r and c…

A: Monetary aggregates are classifications of the money supply in an economy, which group various types…

Q: 3. Describe the important role played by money as a medium ofeconomic exchange.

A: Money can be defined as an object which can be used for the exchange of goods and services. It…

Q: The invention of money helped society get around the problem of ___________________________.   A)…

A: It can be defined as a concept that shows how much currency of one nation is valuable in terms of…

Q: 1. The idea that changes in the money supply affect only prices, not output a. Expansionary monetary…

A: Expansionary monetary policy is when a central bank uses its tools to stimulate the economy.

Q: 25. To make certain the acceptability of money, a government have to   Group of answer choices a.…

A: The measure that depicts the medium of exchange that is being accepted widely as a form of payment…

Q: Monetary Approach with a constant velocity Money supply growth has steady been 2% higher in Japan…

A: In the international market, the level of inflation among the nations explain the value of the…

Q: Explain the classification of money into three parts prevailing in the economics

A: Actually money refers to a certain money value which is always inscribed on a written paper note or…

Q: Assume you are a project manager tasked with selected a new project for your firm. If the current…

A: Explanation: The projects whose return on investment will be greater than the required rate if…

Q: The motives of holding and the function of money are interrelated. Explain TWO (2) of the…

A: Money is important for the economy. It is required by people, businesses, government, etc.…

Q: Fiat currencies only have value based upon exchange, whereas commodity money also has value. A.…

A: Money refers to a medium of exchange that is widely accepted in transactions for goods, services,…

Q: i) Identify the variables within the equation Explain how the exogenous variables within the…

A: In macroeconomics, money is important as it is used to carry daily transactions and for making…

Q: a. List two types of Monetary Authorities.“ b. Explain how they maintain the value of money.“

A: In finance and economics, a monetary authority is a substance that deals with a nation's currency…

Q: The real money balances determine O the purchasing power of the money supply

A: The nominal money supply is the sum of coins, currency, and balances in checking accounts. It is…

Q: When money serves as a mechanism for transforming current income into future purchases, it is…

A: Money is a financial asset which is used to buy goods and services

Q: The functions of money are * a. medium of exchange, unit of account, and means of payment b.…

A: Money is the most liquid form of asset which can be used to buy goods and services.

Q: Money has four functions: a medium of exchange or means of payment, a store of value, a unit of…

A: In the given question, the function of money are given and their implication is suggested.

Q: Fiat money is backed by: Oa. nothing. Ob. the commodity in which it is denominated, the promise of a…

A: Money makes the world go around. Economies depend on the exchange of money for products and…

Q: Task 1. Identify the immediate effect (increase or decrease) of the following cases to the…

A: The entire quantity of money that an economy's population desires to hold is known as the demand for…

Q: When you hold your wealth in money (M1) form, the main purpose is to: O all of these are correct. O…

A: M1: It includes very liquid cash, traveler's cheque, demand deposits.

Q: Explain the different forms of money in today's world a. commodity b. near money c. fiat money

A: Since you have provided multiple parts questions, we will solve the first three sub-parts for you.…

Q: ………… theory of money highlights the important role played by “authorities” in the origins and…

A: Money is a medium of exchange and store of value plus unit of account.

Q: This means that money is something which can be kept for long periods without deterioration or…

A: In economics, money is defined as a commodity which generally and widely accepted as a medium of…

Q: 10 - Which of the following depends on the demand for money, which we say just in case and for this…

A: The desire for holding money as an alternative to purchasing an asset that earns income like a bond…

Q: (Refer to Figure). Assume the interest rate equals 4% and the money supply decreases from MS1 to…

A: The given question is from money market situation where interest rate is 4% and the money supply has…

Q: What is a major drawback in the use of gold bars as money? -They are not easily divisible. -They…

A: Using gold bars as money is an example for commodity money. A commodity money is a medium of…

Q: When inflation is high, money will lose its ability to function as a unit of account. Select one:…

A: Unit of account as a function of money refers to qualtiy of money to measure goods and services in…

Q: To say an asset is liquid implies that: a. We are only considering U.S. currency b. We are…

A: Assets are any valuable objects that a person hold which the person can use to pay its debts and…

Q: Which quotation is irrelevant to the claim in paragraph 1 that "people have confidence that the…

A: In economics, the currency is defined as a Sub-section of the term " money"  which acts as a…

Q: 1. Consider the stationary equilibrium of the overlapping generations model with fiat money when the…

A: introduction- It is endeavored that a decent equilibrium with a nonzero worth money of money,…

Q: Which of the following is NOT a primary reason why a central bank might wish to issue a Central Bank…

A: Introduction The central bank has a special status in the banking structure of any economy. The main…

Q: Which of the following is NOT a function of money? O a. A unit of account O b. A store of value O C.…

A: Money has three primary functions which are mentioned in next step

Q: When you go to a restaurant and see the items stated in U.S. dollars this is an example of money…

A: Money: - anything that can be accepted as an exchange for goods and services is known as money.

Q: What is meant by the term "commodity money"? a) A type of certificate of deposit that can be used to…

A: Money is anything that is accepted as a medium of exchange to buy goods and services, and have store…

Q: Monetary policy: Demand for and supply of money in the money market is shown in diagram below. T Fed…

A: The activities and plans a central bank use to manage the flow of credit and money into an economy…

Q: image attached

A: Money is a generally acceptable means of payment that is used in the settlement of all transactions.…