money supply fr

Q: what is the benefit if the commercial banks create new money?

A: Money refers to the economic unit that is used to make exchanges and to set the value of any…

Q: What are the dangers of increasing the money supply too slowly? Too rapidly?

A: The money supply is a part of the monetary policy, a policy that increases the output and the…

Q: In a repo transaction, the Fed money; in a reverse repo transaction, the Fed money.

A: A repo transaction, short for repurchase agreement, is a form of short-term borrowing mainly in…

Q: Explain how to use the discount rate to expand the money supply.

A: If commercial bank purchase straight from the central bank, the discount rate is the interest rate…

Q: are consumption affect the money demand?

A: The Aggregate demand equation can be written as: Y = C+ I+ G +NX  Where Y = Total demand or GDP…

Q: identify therelationship between money credit and financial institution

A: The financial institutions aim at increasing the monetary base of the economy but creating credit.

Q: In economics term, define what money is

A: Natural objects were among the first forms of currency. Cowrie shells, for example, have been used…

Q: What “backs” the money supply in the United States? What determines the value (domestic purchasing…

A: (Q)What “backs” the money supply in the United States? What determines the value (domestic…

Q: Outline the main determinants of the demand for money.

A: In an economy, demand for money refers to the requirement of money to households and businesses for…

Q: Which statement is not true?   Commodity money cannot be fiat money and vice-versa.   Commodity…

A: Money is something which is widely accepted by general public. It performs the various function such…

Q: What happens to the purchasing power of money when the price level increases?

A: Purchasing Power: Purchasing power indicates the financial ability to buy commodities.…

Q: What means supply of money?

A: Meaning of Exchange Rate: The term exchange rate refers to the situation under which a particular…

Q: The rate of growth of our money supply is controlled by Multiple Choice the President. Congress. the…

A: Money supply is the amount of money injected in the economy.

Q: Which of the following is the way an economist would define a current United States dollar bill?…

A: Fiat money is a currency that is not backed by commodities like gold but issued by the government.…

Q: How will each of the following scenarios impact the market for money The central bank increases the…

A: Introduction :   The money market equilibrium is determined by the demand for and supply of money.…

Q: What's the role of the money in the economy?

A: Money is something that is used to make payments for the commodities purchased or to repay the debts…

Q: Assume the supply of money is fixed by the authorities.

A: The money supply refers to the group of safe assets that households and businesses can use to make…

Q: What is the difference between commodity money and fiat money? Is there a scenario you can think of…

A: Money is used for exchange purposes. Money is also used as unit of account and store of value.

Q: Which of the following aren’t counted in the money supply of the US?

A: Money supply of US consist of M0, M1, M2 and M3

Q: How do changes in the money supply affect the economy?

A: A rise in the money supply (MS) indicates more money is accessible in the economy for borrowing.

Q: Only one of the following is part of the money supply. Which is it? Select one: A. Gold. B.…

A: The money supply, also known as the money stock, refers to the total amount of money that is in…

Q: What happens if there is a shortage of money in the economy?

A: Money: Money could be anything that serves as the medium of exchange, has intrinsic value, measures…

Q: What is money supply and give an example?

A: Money supply is the circulation of total domestic currency in the economy in a particular period of…

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: what is the overall impact of lower interest rate on the money market

A: Interest rate changes can have a beneficial or negative impact on the markets. Central banks…

Q: dentifying what variable is affected in the money market and providing a detailed explanation as to…

A: The above graph indicates the market situation which is affected by the interest rate in the…

Q: economics, money refers to wealth income currency assets used and accepted as payment.

A: Money consider as a medium of trade, as a store of significant value, and as a unit of record. Mode…

Q: Explain what determines the demand for money.

A: The key determinants of the demand (DD) for money are income and the interest rate. The Demand (DD)…

Q: inflation on Moneys if it is not invested

A: Inflation refers to increase in average price of goods and services in an economy.…

Q: Explain the determinants of money supply in an economy?

A: According to the given question In simple terms we can say that the money supply is usually known as…

Q: Draw a diagram to explain the link between money supply and inflation.

A: Inflation is caused by growing the cash flow more than economic production grows and create price…

Q: Due to favorable exchange rate policies and terms of trade, prices in the economy fell. What impact…

A: Before answering the above question, let us first understand a few relevant concepts:  1. Money…

Q: What is the difference between temporary and permanent changes in money supply?

A: A MP is a policy adopted by the Central Bank or the government of the company to control the supply…

Q: The number of times per year each dollar is spent     A. Money Supply   B. Velocity   C. Price…

A: Quantity theory of money shows the relationship between Velocity, Money supply , price level and the…

Q: Explain why a fall in the purchasing power of money reflects a rise in inflation.

A: The purchasing power (PP) of money reflects the goods and services it can buy. A fall in the…

Q: Currency M1 Money supply measure Venn diagram M2 Currency M1 M2 • Traveler's checks • Checkable…

A: The total of all the money (all currencies and liquid assets) in a country's economy is the money…

Q: Which of the following could not be used as commodity money A. Gold coins B. Camel cigarettes C.…

A: The US currency is not used as commodity money because commodity money is the money that also has…

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…