The pandemic has impacted the use of currency in our economy. Explain in your own words, how the changes in the use of currency would affect the monetary base in the banking system, while holding all other factors constant.

Q: What is the primary role of a central bank in a country's banking system? a) Issuing credit cards b)…

A: Central banks play a crucial role in overseeing the banking system, ensuring compliance with…

Q: Difference between Central bank of the Philippines and Bangko Sentral ng Pilipinas.

A: Central banks provide monetary stability within an economy , every country have their own central…

Q: How many banks failures occurred in the United States during 2021?

A: A bank failure occurs when a bank becomes insolvent. Under such circumstances, the bank is unable to…

Q: Monetary policy can only be effectively designed and implemented in economies that have a fractional…

A: a) The banks in the economy keep a fraction of the total deposit they receive in form of cash in…

Q: While on spring break you mentioned that the reserve ratio actually allows banks to "create"…

A: The percentage of the bank’s total deposit that is required to be held in reserves, either in the…

Q: How does the central bank control the money supply and interest rates to influence the economy?

A: The objective of the question is to understand the role of a central bank in controlling the money…

Q: Developed economies are less prone to banking crises than developing or less developed economies.…

A: When talking about banking crisis, it can be said that it is the situation when banks are running…

Q: Bank Regulation Describe two ways in which bank regulation has hurt the banking system.

A: The banking regulation means making laws that helps in governing the banks and to protect the banks…

Q: You just earned $25.000 which you deposit it in a bank account, How much can fractional-reserve…

A: Credit creation refers to the expanision of deposits, bank can use credit  creation to increase the…

Q: Assuming a reserve requirement of 20%, if the central bank of a country injects an additional…

A: The required reserve ratio of a bank depicts the minimum amount of deposits a bank must keep as…

Q: What role does the federal reserve bank play in conducting monetary policy, fiscal policy, and…

A: Federal Reserve Bank is the Central Bank of the United States, created by the Congress. Federal…

Q: The amount a bank is required to withhold on a customer's deposits on reserve in their vault or on…

A: Banks hold a certain proportion of deposits as required reserves, mandated by central bank.

Q: Which of the following is true about Central Bank Digital Currencies (CBDCs)? Central Bank Digital…

A: Central Bank Digital Currency Central bank digital currency is abbreviated by CBDC. It is the…

Q: For a financial system, the reserve ratio is 10% and the Fed decides to buy $5 million worth of…

A: The reserve ratio is 10% and the central bank is buying bonds. This would imply that the money…