To ensure that paper money will be accepted, the U.S. government implicitly promises the public that Group of answer choices it will not change currency denominations so that the paper currencies U.S. citizens have will continue to be used for exchanges. the U.S. monetary system will always be backed by a precious metal. it will not print money so fast that it loses its value. it will not change the rate at which the dollar is exchanged for other currencies.

Q: Gresham’s Law is the tendency to hoard currency as its commodity value True False

A: Gresham's law of economics states that if coins containing metal of different value have the same…

Q: Advocate the benefits of using monetary policy to control the economy.

A: A change in the money supply is known as monetary policy. By keeping an eye on price changes and…

Q: Regional differences that make implementing monetary policy difficult are present in the Eurozone…

A: Monetary policy refers to the one that is implemented by the central bank to make changes in the…

Q: Government monetary authorities manipulate the supply of money in the economy primarily to Group of…

A: Money supply refers to the total amount of money available in the economy. It includes all types of…

Q: According to Lawrence White in "How Common Has Private Currency Been?" The private sector can…

A: It can be described as the tangible, physical forms of money that are used in the exchange of…

Q: On the previous graph, use the purple line (diamond symbol) to show how the stabilization fund…

A: Action is shown by line S3 and the new exchange rate is determined by point B.

Q: Global money can impact monetary policy Group of answer choices Very little because businesses are…

A: Global money, also known as a world currency, supranational currency, or global currency, is a form…

Q: At the end of 2021, the Federal Reserve took an inventory of its foreign currency reserves. Since…

A: Net capital outflow or NCO refers to the net flow of funds that are invested abroad by a country at…

Q: demonetization

A: Demonetization refers back to the technique of discontinuing the use of a specific forex unit,…

Q: The Fed Group of answer choices issues deposits to the public. lends money to foreign governments.…

A: The FED is the primary organisation in charge of managing the nation's monetary policy through…

Q: Money is: the same as income. anything that is commonly accepted as medium of…

A: Money is a commodity is used to conduct daily transactions of goods and services. Money can be in…

Q: The U.S. economy is faltering, so the value of its associated currency, the dollar, is likely to

A: Here, it is given that US ex experiencing a faltering of the economy,  which explains a slowdown of…

Q: If the U.S. economy is entering in a recession. What kind of directives may address using  monetary…

A: Recession refers to the situation where there is lower economic activity in an economy.

Q: Cheque account balances are not included in the money supply because it is not something the Reserve…

A: Bank is an establishment that deals in money and its substitutes and gives other money-related…

Q: Did you hear about bitcoin? Will the development in these other forms of money reduces the demand…

A: Yes, bitcoin is a type of cryptocurrency.

Q: Which one was not one of the arguments in support of creating a monetary union in the EU (Eurozone)?…

A: The European Union is the agreement between 27 countries of Europe, that are agreed upon free…

Q: Monetary Policy Let’s presume that you are the leader of the central bank of the country of Namibia.…

A: The demand side of economic policy is monetary policy, which refers to the measures taken by a…

Q: Countries normally attempt to manage their economy using monetary policy. By managing the money…

A: Concepts: The international flow of money refers to the inflow and outflow of money in an economy…

Q: One reason that the quantity of money demanded will increase as the value of a currency decreases is…

A: Import Effect is defined as expensive imports when the domestic currency weakens.

Q: Which monetary standard does this image explain? Describe when this system was initiated. Who are…

A: A monetary system is a set of rules, institutions, and mechanisms governing the creation,…

Q: Choose the correct answer: The nation’s money supply will increase if (all else equal) There is an…

A: When talking about money supply, it can be said that it is the total amount of money that is…

Q: Why should the lack of conversion of denominations of one class of shells into another class among…

A: In a specific country or socio-economic setting, money is any commodity or verifiable record…

Q: State three ways in which a government can influence the value of its currency. For each, state…

A:

Q: Consider a country that fixes the value of its currency to gold and allows the free flow of capital.…

A: The main way then that the nation might have both a fixed exchange rate and an autonomous money…

Q: The reserve ratio is the fraction of deposits that banks   a.Hold in order to maintain the…

A: The ‘reserve’ requirement ratio is the bare minimum amount of ‘deposits that the commercial banks…

Q: Why do highly inflated countries such as Brazil tend to have weak home currencies?

A: Weak currency means a depreciating currency which has a high supply or low demand in foreign…

Q: Suppose the central bank in the nation of Zook attempts to pay off its national debt by printing…

A: Money supply refers to the total volume of money in the form of currency and other liquid assets…

Q: Which of these is most likely an effect of a decrease in the prime lending rate by the Federal…

A: Answer- 2. The rate of inflation will increase.

Q: Assume that individuals do not hold currency. If the reserve ratio is equal to 5 cent, then if the…

A: Required reserve ratio is the minimum requirement of reserve that banks are needed to hold which…

Q: International Gold Standard (19th century): If different countries fix the price of their currencies…

A: Given information: The rate of 1 ounce of gold in dollars = $100 The rate of 1 ounce of gold in…

Q: The principal reason(s) that so much U.S. currency is held outside the U.S is (are). banks all…

A: The US dollar is world strongest currency and it is used export and imports purposes by the…