Explain why credit cards are not considered as money.

Q: For the following list of items, indicate if they are in M1, M2, or neither: a. Your $5,000 line of…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub- parts…

Q: Could each of the following items potentially serve as money? Consider each as a medium of exchange,…

A: As we answer only three subparts and the question has more than 3 subparts, we would be answering…

Q: How do banks create money?

A: Money and Banks are intertwined. Banks are one of the financial institutions of the nation. A major…

Q: In ancient Greece, why was gold a more likely candidate for use as money than wine?

A: Money is something which is has a general acceptability and is a common medium of exchange to buy…

Q: what tools are used by the central bank in Jamaica to affect the money supply

A: In the case of Jamaica, the 2 main operational tools are OMOs and reserve requirements. The Bank of…

Q: Does the fact that your bank keeps only a fraction of your account balance in reserve make you…

A:

Q: How much money does the average American have in the bank?

A: As per Federal Reserve Survey of Consumer Finance 2016, the average balance was $10545.

Q: How does the federal government regulates banking and our money supply

A: We are going to analyze relationship between federal government and banking to answer this question.

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: List the 3 functions of money.

A: STEP1 The main functions/purpose of money are: acting as medium of exchange, as a store of value,…

Q: Could corn be used as commodity money?

A: Commodity Money: The commodity money refers to the commodities that were used as the medium of…

Q: The functions of money are * a. medium of exchange, unit of account, and means of payment b.…

A: Money is the most liquid form of asset which can be used to buy goods and services.

Q: How do banks create money?  Please explain

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

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: History of money

A: The word money means a medium of material where one can exchange goods and services.

Q: Why does the Federal Reserve require commercial banks to have reserves?

A: Reserves are the obligations of the commercial banks to have against their deposits. These are the…

Q: Debit cards allow an individual to transfer funds directly in a checkable account to a merchant…

A: Money:Money refers to anything which is accepted by the people as a medium of exchange. It could be…

Q: Why are credit cards excluded from the equation for money supply?

A: The amount is the sum of the cash, coins and bank account balances in  circulation. The total amount…

Q: Describe Factors that influence the use of money vs credit cards.

A: Money: Money is a widely accepted instrument used as a measure of value, a medium of exchange, a…

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: Money

A: Money is the main & most important ‘medium of exchange’ in an economy. Through these medium…

Q: Can the banking sector "create" money? Explain your answer.

A: Banks are defined as financial institutions that perform various financial functions for their…

Q: Why is money considered fungible?

A: The term “fungibility” means the sate of interchangeability. Money is a unit that acts a measure of…

Q: How does Bitcoin work? Is it legit? How do they invest in Bitcoin?

A: Cryptocurrency is known as a digital currency that is encrypted to prevent counterfeiting and double…

Q: What is the Bangladesh bank money-laundering prevention act

A: Money laundering is viewed as an offence since it has conceivably wrecking financial, security, and…

Q: What is the difference between book money and paper money?

A: Barter system is a demonstration of exchanging labor and products between at least two gatherings…

Q: True or False: When you deposit currency in a checking account, cash goes out of circulation and the…

A: Answer to the question is as follows :

Q: Why credit cards are not money? Explain any five points.

A: Money is any object which is acceptable legally as payment for services and goods and also for the…

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: what if the Bank of Cheap Loans tries to charge an even lower rate?

A: A number of banks and housing finance companies reduce the interest rate for a fee on the floating…

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: Why does the Federal Reserve limit how much a bank is allowed to "multiply" its deposits?

A: when commercial banks receive a deposit they keep a certain part of that deposit with them in form…

Q: money supply,

A: “Since you have asked multiple questions, we will solve the first question for you. If you want any…

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: How online banking affects money demand?

A: The equilibrium in the money market is attained at the point where the money supply intersects the…

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: Why are credit cards not included in the money supply even though they can be used easily for…

A: The money supply basically refers to the all entire quantity of money that is in circulation, which…