The supply of money in the economy.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 16, Problem 1CQQ

To determine

The supply of money in the economy.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'c' is the correct answer.

Explanation of Solution

Any commodity or item that a community accepts as payment for the goods and services is known as money. It can be any commodity that the consumer gives in exchange for goods and services. The banks are financial institutions that play an important role in a financial market.

Option (c):

The use of the lines of credit which are accessible with credit card cannot be considered as money supply because it is a debt instrument and there is no supply of money. Therefore, the lines of credit accessed through credit card are not included in the money supply. Thus, option 'c' is correct.

Option (a):

The metal coins are a form of money that is used by an economy for the purpose of the exchange of goods and services. They are accepted as payment for the goods and services. Hence, they are included in the money supply. Thus, option 'a' is incorrect.

Option (b):

Paper currency is a widely accepted form of money all over the world. Hence, it is included in the money supply of the economy. Thus, option 'b' is incorrect.

Option (d):

Bank balances that are accessible with debit cards are the savings of the customers and they are included in the money supply of the economy. When the bank balance increases, the money supply increases, and vice versa. Thus, option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Banks: Banks are financial institutions that accept deposits of money from the general public and use it to provide loans to the public.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

02:18

Students have asked these similar questions

Assume the United States is a large consumer of steel, able to influence the world price. DUS and SUS denote its demand and supply schedules in Figure 1. The overall (United States plus world) supply schedule of steel is denoted by SUS.+W. Figure 1 Import Tariff Levied by a Large Country Answer all questions (a-f) by referring to Figure 1 above. a) Calculate the free trade market equilibrium price, domestic consumption, and volumE Answer all questions (a-f) by referring to Figure 1 above. a) Calculate the free trade market equilibrium price, domestic consumption, and volume of steel imports by the US. [5 marks] b) Suppose the United States imposes a tariff (t) of $100 on each ton of steel imported. With the tariff, calculate the price of steel and the volume of steel imports by the US. [5 marks] c) Of the $100 tariff, how much is passed on to the US consumer via a higher price, and how much is borne by the foreign exporter? [5 marks] d) Calculate the tariff's deadweight welfare loss to…

1. A doctor quits his job, which pays $77,000 per annum, to open a non-governmental organization (NGO) to serve the needs of orphans. His annual expenses for the NGO amounts to $62,700 for food and daily supplies, $9,400 for maintenance, and $1,800 for books. What is his opportunity cost of opening the NGO? (Show working) 2. During the COVID-19 pandemic, hospitals worldwide faced severe resource constraints, including: a. Limited ICU beds b. Shortage of ventilators c. Insufficient doctors and nurses d. Lack of vaccines in early 2021 Governments and hospitals had to make critical decisions about who receives treatment first and how to allocate limited resources efficiently. In no more than 150 words and using core economic concepts of scarcity, choice and opportunity cost, how would you help your government make these critical decisions?

What is the argument about necessary evil?

Answer 2

Question

Chapter 16, Problem 1CQQ

To determine

The supply of money in the economy.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'c' is the correct answer.

Explanation of Solution

Any commodity or item that a community accepts as payment for the goods and services is known as money. It can be any commodity that the consumer gives in exchange for goods and services. The banks are financial institutions that play an important role in a financial market.

Option (c):

The use of the lines of credit which are accessible with credit card cannot be considered as money supply because it is a debt instrument and there is no supply of money. Therefore, the lines of credit accessed through credit card are not included in the money supply. Thus, option 'c' is correct.

Option (a):

The metal coins are a form of money that is used by an economy for the purpose of the exchange of goods and services. They are accepted as payment for the goods and services. Hence, they are included in the money supply. Thus, option 'a' is incorrect.

Option (b):

Paper currency is a widely accepted form of money all over the world. Hence, it is included in the money supply of the economy. Thus, option 'b' is incorrect.

Option (d):

Bank balances that are accessible with debit cards are the savings of the customers and they are included in the money supply of the economy. When the bank balance increases, the money supply increases, and vice versa. Thus, option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Banks: Banks are financial institutions that accept deposits of money from the general public and use it to provide loans to the public.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

02:18

Answer 3

Question

Chapter 16, Problem 1CQQ

To determine

The supply of money in the economy.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'c' is the correct answer.

Explanation of Solution

Any commodity or item that a community accepts as payment for the goods and services is known as money. It can be any commodity that the consumer gives in exchange for goods and services. The banks are financial institutions that play an important role in a financial market.

Option (c):

The use of the lines of credit which are accessible with credit card cannot be considered as money supply because it is a debt instrument and there is no supply of money. Therefore, the lines of credit accessed through credit card are not included in the money supply. Thus, option 'c' is correct.

Option (a):

The metal coins are a form of money that is used by an economy for the purpose of the exchange of goods and services. They are accepted as payment for the goods and services. Hence, they are included in the money supply. Thus, option 'a' is incorrect.

Option (b):

Paper currency is a widely accepted form of money all over the world. Hence, it is included in the money supply of the economy. Thus, option 'b' is incorrect.

Option (d):

Bank balances that are accessible with debit cards are the savings of the customers and they are included in the money supply of the economy. When the bank balance increases, the money supply increases, and vice versa. Thus, option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Banks: Banks are financial institutions that accept deposits of money from the general public and use it to provide loans to the public.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

02:18

Answer 4

Question

Chapter 16, Problem 1CQQ

To determine

The supply of money in the economy.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'c' is the correct answer.

Explanation of Solution

Any commodity or item that a community accepts as payment for the goods and services is known as money. It can be any commodity that the consumer gives in exchange for goods and services. The banks are financial institutions that play an important role in a financial market.

Option (c):

The use of the lines of credit which are accessible with credit card cannot be considered as money supply because it is a debt instrument and there is no supply of money. Therefore, the lines of credit accessed through credit card are not included in the money supply. Thus, option 'c' is correct.

Option (a):

The metal coins are a form of money that is used by an economy for the purpose of the exchange of goods and services. They are accepted as payment for the goods and services. Hence, they are included in the money supply. Thus, option 'a' is incorrect.

Option (b):

Paper currency is a widely accepted form of money all over the world. Hence, it is included in the money supply of the economy. Thus, option 'b' is incorrect.

Option (d):

Bank balances that are accessible with debit cards are the savings of the customers and they are included in the money supply of the economy. When the bank balance increases, the money supply increases, and vice versa. Thus, option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Banks: Banks are financial institutions that accept deposits of money from the general public and use it to provide loans to the public.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

02:18

Answer 5

Chapter 16, Problem 1CQQ

To determine

The supply of money in the economy.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'c' is the correct answer.

Explanation of Solution

Any commodity or item that a community accepts as payment for the goods and services is known as money. It can be any commodity that the consumer gives in exchange for goods and services. The banks are financial institutions that play an important role in a financial market.

Option (c):

The use of the lines of credit which are accessible with credit card cannot be considered as money supply because it is a debt instrument and there is no supply of money. Therefore, the lines of credit accessed through credit card are not included in the money supply. Thus, option 'c' is correct.

Option (a):

The metal coins are a form of money that is used by an economy for the purpose of the exchange of goods and services. They are accepted as payment for the goods and services. Hence, they are included in the money supply. Thus, option 'a' is incorrect.

Option (b):

Paper currency is a widely accepted form of money all over the world. Hence, it is included in the money supply of the economy. Thus, option 'b' is incorrect.

Option (d):

Bank balances that are accessible with debit cards are the savings of the customers and they are included in the money supply of the economy. When the bank balance increases, the money supply increases, and vice versa. Thus, option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Banks: Banks are financial institutions that accept deposits of money from the general public and use it to provide loans to the public.

Answer 6

Chapter 16, Problem 1CQQ

To determine

The supply of money in the economy.

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'c' is the correct answer.

Explanation of Solution

Any commodity or item that a community accepts as payment for the goods and services is known as money. It can be any commodity that the consumer gives in exchange for goods and services. The banks are financial institutions that play an important role in a financial market.

Option (c):

The use of the lines of credit which are accessible with credit card cannot be considered as money supply because it is a debt instrument and there is no supply of money. Therefore, the lines of credit accessed through credit card are not included in the money supply. Thus, option 'c' is correct.

Option (a):

The metal coins are a form of money that is used by an economy for the purpose of the exchange of goods and services. They are accepted as payment for the goods and services. Hence, they are included in the money supply. Thus, option 'a' is incorrect.

Option (b):

Paper currency is a widely accepted form of money all over the world. Hence, it is included in the money supply of the economy. Thus, option 'b' is incorrect.

Option (d):

Bank balances that are accessible with debit cards are the savings of the customers and they are included in the money supply of the economy. When the bank balance increases, the money supply increases, and vice versa. Thus, option 'd' is incorrect.

Economics Concept Introduction

Concept introduction:

Money: Money is any item that is accepted as payment for the goods and services provided by an economy.

Banks: Banks are financial institutions that accept deposits of money from the general public and use it to provide loans to the public.

Answer 7

Chapter 16, Problem 1CQQ

To determine

The supply of money in the economy.

Answer 8

Expert Solution & Answer

Answer to Problem 1CQQ

Option 'c' is the correct answer.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Any commodity or item that a community accepts as payment for the goods and services is known as money. It can be any commodity that the consumer gives in exchange for goods and services. The banks are financial institutions that play an important role in a financial market.

Option (c):

The use of the lines of credit which are accessible with credit card cannot be considered as money supply because it is a debt instrument and there is no supply of money. Therefore, the lines of credit accessed through credit card are not included in the money supply. Thus, option 'c' is correct.

Option (a):

The metal coins are a form of money that is used by an economy for the purpose of the exchange of goods and services. They are accepted as payment for the goods and services. Hence, they are included in the money supply. Thus, option 'a' is incorrect.

Option (b):

Paper currency is a widely accepted form of money all over the world. Hence, it is included in the money supply of the economy. Thus, option 'b' is incorrect.

Option (d):

Bank balances that are accessible with debit cards are the savings of the customers and they are included in the money supply of the economy. When the bank balance increases, the money supply increases, and vice versa. Thus, option 'd' is incorrect.