Link each of the below concepts in the table with its explanation 1- Demand deposits a. is an example of "Commodity Money" b. The institution that oversees the banking system and regulates the money supply is the- 2- Money Supply c. is the quantity of money available in the economy. It can be measured by using Monetary Aggregates. 3- Central bank d. are balances in bank accounts that depositors can access on demand by writing a check. 4- Gold

Link each of the below concepts in the table with its explanation 1- Demand deposits a. is an example of "Commodity Money" b. The institution that oversees the banking system and regulates the money supply is the- 2- Money Supply c. is the quantity of money available in the economy. It can be measured by using Monetary Aggregates. 3- Central bank d. are balances in bank accounts that depositors can access on demand by writing a check. 4- Gold

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter14: Macroeconomic Policy: Tradeoffs, Expectations, Credibility, And Sources Of Business Cycles

Section: Chapter Questions

Problem 8E

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a. (i).Draw a graph showing equilibrium in the money market. Carefully label all curves andaxes and explainwhy the curves have the slopesthey do.(ii). Using the graph you prepared in a(i), illustrateand explain what happens when the Central Bankdecreases the money supply.(iii).When the Central Bankdecreases the money supply, theequilibrium level ofincome changes. Illustrate andexplain how
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Which of the following about saving deposits a-under M2 supply, they they are bank accounts that you cannot white a check from directly. generally moneyl to be kept asided. you can easily withdraw money cash from these aacounts at an automatic teller machine or back d- included in M1 money supply these are the monies held in checking accounts. they are called demand deposits or chekable deposits because the bank must give the deposit holder his money on demand when a check is written or a debit card is used c- included in M1 money supply therefore, very lliquid these are coins and bills that vcirvulate in an economy that are NOT held by the US treasury Federal reserve bank, or in any bank vaults so the cash you havae in your wallet pocket right now d- under M2 money sypplly funds that you invest in where the deposits of many investors are pooled together and invested in a safe way such as short term goverment bods.
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A purchase of U.S. government securities by the Fed causes A. a multiple contraction of the money supply because deposits fall by more than the amount of the securities purchased. B. a contraction of the money supply equal to the amount of the securities because all other transactions occur within the banking system. C. an expansion of the money supply equal to the amount of the securities because all other transactions occur within the banking system. D. a multiple expansion of the money supply because the required reserve ratio is less than one
Corna - virus Pandemic has affected many people in Barbad0s, causing not being able to work , which resulted in a reduced activity in the economy.1. Carefully explain with use of graph the effect of reduced activity in the economy on the Money/financial market. Identify 0ne policy along with the aim of said policy enacted by the government(Barbados) to deal with reduced activity in the economy because of the Pandemic. 2. Using the same graph from question-one illustrate and described the impact of the policy-enacted.3. Discuss two monetary policies that could be introduced by the central-bank which would have the same impact as the policy identified in question two that was enacted by the government.4. From the three policies from question 2 and question 3 , identify one that would be most effective and why?
In an economy where the central bank implements negative interest rates as a monetary policy tool, what is the most likely short-term impact on consumer savings behavior and bank profitability? A. An increase in consumer savings as people seek to safeguard their money and a rise in bank profitability due to increased lending. B. A decrease in consumer savings as the incentive to save diminishes and a decrease in bank profitability due to lower interest margins. C. No significant change in consumer savings behavior but an improvement in bank profitability due to lower borrowing costs. D. A shift in consumer investment towards riskier assets and challenges in bank profitability due to compressed interest margins. Please don't use chatgpt it is giving wrong answer and please provide valuable answer
Question 10a. (i).Draw a graph showing equilibrium in the money market. Carefully label all curves andaxes and explainwhy the curves have the slopesthey do.(ii). Using the graph you prepared in a(i), illustrateand explain what happens when the Central Bankdecreases the money supply.(iii).When the Central Bank decreases the money supply, the equilibrium level of income changes. Illustrate andexplain how.
List the three traditional tools that a central bank has for controlling the money supply.
Question 2 Full explain this question and all part work you a and b both question plz solution sent me. All part thanks I give you thum??
Which statement is not correct? A. Money is a legal tender since the law requires a lender to accept money in the repayment of debts. B. Money as a store of value can be held and exchanged later for goods and services. C. In its role as a medium of exchange, money makes exchanges easier by reducing transactions costs. D. The demand for money represents the idea that there is a positive relationship between the interest rate and the quantity of money demanded. E. none of the above