Explain/Discuss the Following Concepts/Issues Money, and the four assets that qualify as money.

Q: Which category of the money supply would you be contributing to if you invest in money market funds?…

A: Money supply can be defined as the total amount of money in circulation over a specific period of…

Q: Why do we permit governments to be in charge of money?

A: The economies tend to work majorly upon the basis of the working of the markets. The markets help in…

Q: Set forth and describe two of the basic qualities needed for any item to be used as money.

A: Money is a resource or asset that is accepted and used as an exchange medium to buy commodities and…

Q: What is the definition of commercial bank ?

A: Commercial Bank is that institution of finance which are of three types: Public Banks- like State…

Q: What proportions of your money balance are held for transactions, precautionary, and speculative…

A: Money is anything which can be used as a medium of exchange, store of value and unity of account.…

Q: What are the main functions of money ?

A: Money refers to anything that is widely accepted in an economy as payment in exchange for goods and…

Q: Critically analyse the benefits and costs of deposit insurance including moral hazard and if the…

A: Deposit insurance is a sort of insurance that protects depositors against losses in the case of a…

Q: Haley transfers $100 from her checking account and into a money market mutual fund a. Her assets…

A:

Q: How do banks create money?  Please explain

A: Under the fractional reserve banking system, the banking institutions keep aside a fraction of…

Q: Explain why credit cards are not considered as money.

A:

Q: In many casinos ,a person buys chips to use for gambling.Within the casino 'swalls, customers often…

A: ANS The four primary functions of money are: Medium of exchange A standard of account Store of…

Q: A bank's assets include its and a bank's liabilities include its

A: In the T account or asset and liability account bank record it's asset and liability.

Q: The following table shows the money supply for country SODA in the year 2018. Items USD Million…

A: There are four measure of money supply, which are M1, M2, M3 and M4. All are aligned according to…

Q: What components of money do we count in M2?

A: Answer: Introduction: Money: Money is the stock of assets used for transactions. For instance,…

Q: Explain how banks create money.

A: Answer - Bank - Banks are the financial institutions . they have many functions such as deposition…

Q: Your uncle repays a $100 loan from Tenth NationalBank (TNB) by writing a $100 check from his…

A: Tenth National bank

Q: In many casinos, a person buys chips to use for gambling. Within the casino's walls, customers often…

A: Given : In casinos, chips are used as money to purchase goods and services.

Q: One reason why cryptocurrency is not considered money by many is that it is not considered to be a…

A: A cryptocurrency is a digital or simulated currency protected by encryption, making counterfeiting…

Q: Draw a simple T-account for First National Bank of Me, which has $9000 of deposits, a reserve ratio…

A: The simple T-account signifies the graphical illustration of transactions of the business carried…

Q: Which function of money is best served by bitcoin?   A. A medium of exchange   B. A unit…

A: The bid=t coin is accepted to exchange for certain goods and services. This indicates the medium of…

Q: What would happen if we all decided that money has no value?

A: Money has a value, as it is issued by the government that is used around the world. People use the…

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: Assets 1. A $10 bill 2. The funds in a money market account 3. A share in a publicly traded company…

A: Liquidity is the degree of quick  convertibility of any assets into the cash . The asset is said to…

Q: Explain money, types and functions of money.

A: Human needs a variety of goods and services to sustain life but they have the skills to produce one…

Q: Explain each of the following types of deposit accounts: a.demand deposit b.certificate of deposit…

A: A bank is an institute which deals in credit and money creating of the economy. It provides the…

Q: In some countries, governments and bank authoritiesadopt policies that impose restrictions on asset…

A: During absence of a safety net of government ,banks still would have the incentive to take upon too…

Q: explain the sources of funds and uses of bank funds as outline in the banks balance sheet. which one…

A: Pool of money is known as fund. Primary deposits, shareholders fund and borrowed capital are main…

Q: hold 100% of their deposits

A: 100% reserve system in which banks keep the total amount of each depositor’s funds in cash. This…

Q: Assets 1. A share in a publicly traded company 2. A $5 bill 3. The funds in a money market account…

A: Cash can be used immediately used as a medium of exchange, so a $5 bill is the most liquid asset. A…

Q: 3. What is a key advantage of money over other financial assets such as stocks, bonds, precious…

A: Money is a monetary unit that is commonly used as a medium of exchange in the economy. Money…

Q: Explain Money, and the four assets that qualify as money.

A: Money is anything which is able to buy goods. Money is a medium of exchange for goods and services.…

Q: Elaborate on the FOUR (4) main functions of money.

A: Money can be defined as anything that can be widely for the transaction of goods and services.

Q: Type of Deposit Reserve Requirement Checkable Deposits $7.8 - 48.3 Million 3% Over $48.3 Million 10…

A: Required reserve and reserve ratio are positively related to each other. It means as the reserve…

Q: What are the arguments for and against deposit insurance such as that provided by the FDIC?

A: For: Safety deposit Prevents bank-run Increase savings Open bank assistance Prevents economic…

Q: In fractional-reserve banking system, such as we have in the united states, banks create money. How…

A: A fractional reserve banking system refers to a system in which banks hold reserves whose value is…

Q: Can you think of a reason why people in general donot lend money to one another to buy a house or…

A: They’re likely coming to you because they can’t get a loan from a bank. which means traditional…

Q: Compare and contrast representative money, credit money and commodity money

A: Representative money:- It can be defined as the means of commerce, frequently printed on paper, that…

Q: Distinguish between legally required reserves and excess reserves.

A: Bank reserves are the minimum cash that financial institutions must have in hand to meet the…

Q: Explain Three specific motives to hold money instead of non-monetary financial assets.

A: A non-monetary financial asset is one whose value changes over time according to the conditions…

Q: e. If the Bank of Uchenna is not meeting its reserve requirement, what action can it take to meet…

A: Brief about above parts- Dollar value of Reserve = 20% of deposit = 20% of $100000 = $20000 Here the…

Q: what is the purpose and functions of inside money transfer?

A: In Democratic government system typically, it has been observed that there is both public and…

Q: Near moneys are  a. Paper money  b. Flat money  c. Highly liquid financial assets  d. Any…

A: Near money: - Near moneys are highly liquid financial assets other than cash, it is also known by…

Q: How does the banking system create money? Explain

A: The important function which the banks performs is the creation of money in the economy. This…

Q: 4. Explain what is the fractional reserve banking system and how it is different from a 100% reserve…

A: A central bank is a bank that controls the money supply in an economy. It increases the money supply…

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.