Recall the three main roles of money, unit of account, store value, and medium of exchange. Now consider the following pairs of items that might serve as money. For both pairs, clearly indicate which item is generally superior as a type of money and indicate which role of money (one) for which it is most superior to the other item in the pair. Peaches versus raisins Stainless steel 1/8 pound (weight) cubes versus large pieces of granite

Q: Describe the concept of commodity money and provide historical examples of commodities used as…

A: Commodity money has had a significant impact on the development of monetary frameworks since the…

Q: You can walk into any department store and compare prices on jeans. Which of the following functions…

A: Money as a unit of account, or measure of value refers to that function of money that helps us to…

Q: Which of the following statements represent a use of money that is not consistent with its…

A: Money is a commodity that is commonly acknowledged as a medium of exchange for goods and services.…

Q: Nick is heading out to lunch. He goes to the bank and withdraws $30 from his savings account. He…

A: please find below the answer.

Q: Gilberto wants to purchase a new computer and go to the Caribbean for spring break. The computer is…

A: Money is a medium of exchange which can be used for making payments for goods and services.

Q: Shen wants to both purchase a new laptop and go Florida for spring break. The computer is priced at…

A: Money is one of the most important medium to buy and sell goods and services and pay debts and other…

Q: Gold and silver have been historically used as materials for making commodity money (coins) by many…

A: The functions of money can be sub-divided into primary functions and secondary functions. The…

Q: As early as the year 1000 CE, nigeria used silver and other metal coins as currency.  This is an…

A: Commodity money is the money that as certain intrinsic value. The intrinsic value is derived from…

Q: In the POW camps during World War II, cigarettes fulfilled the functions of money because they acted…

A: Money is a widely accepted transaction prices hold value over a time period. The value of money is…

Q: A primary feature of money is that it serves as barter value intrinsic value commodity value a…

A: In an economy, money performs various task according to the requirement of the people when making…

Q: 1. a) How do the practices of seigniorage and debasement impact the value of species standard money?…

A: Such practices reduce the real value of money Seigniorage is the cost of printing money. Debasement…

Q: Money must serve three functions. Match each scenario to the function of money that it refers to. A.…

A: A) Dollar and cents being yardstick would be the unit of account function of money. This is because…

Q: Suppose a new customer adds $100 to his account at North Central National Bank, which the owners of…

A: A sum of money borrowed and paid with interest is referred to as a loan. It is given by the central…

Q: Money functions as:   Question 6 options:   A)  a unit of account.   B)  a store of value.…

A: Money is used for the payment of goods and services.

Q: "U.S. dollar maintains its value over the last year" is an example of which function of money?…

A: Money is a widely accepted medium of exchange that is used as a store of value and unit of account…

Q: If you take $200 out of your savings account and keep it in your wallet, the immediate result of…

A: Note: We’ll answer the first question since the exact one wasn’t specified. Please submit a new…

Q: Which of the following is considered least liquid? O a) currency bills O b) Checking account O c)…

A: In economics, liquidity is defined as the ability of an asset to be turned into cash. An asset is…

Q: Indicate whether each item in the following table is scarce, portable, divisible, or uniform. (Check…

A: Scarce: Scarce refers to the availability of a resource being limited or finite relative to its…

Q: While some tokens, such as a metro fair card or plane ticket, are only acceptable forms of payment…

A: While some tokens such as a metro fair card or plane ticket are only acceptable forms of payment in…

Q: Describe how money contributes to economic activity and allows for a more complex society than…

A: The term "money" refers to anything which is generally accepted as a medium of exchange. There are…

Q: Which of the below statements DOES NOT CORRECTLY capture the meaning of the word "money" as…

A: Money is anything that serves as a medium of exchange, a unit of account, and a store of value

Q: If people use ketchup packets as a medium of exchange, what type of money would they be?

A: When ketchup packets act as medium of exchange then the money would be called as commodity…

Q: When money serves as a unit of account, this means that money acts as... Select the correct answer…

A: Money is a form of asset that individuals in an economy use to buy goods and services.Money acts as…

Q: Currency is different from money in that currency______  A)is a note representing the worth of…

A: A currency is a:- means of payment can not be duplicated (it is illegal) currency differs…

Q: You're using prices to determine which apple is best (obviously Honeycrisp). What is the use of…

A: Money is something that is generally acceptable the payment of goods and services in an economy. A…

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.