The use of money as a medium of exchange represents the most important service that money renders. True or False

Q: The Federal Reserve could reduce the money supply by    selling government bonds in the open market…

A: Central banks use several methods, called monetary policy, to increase or decrease the amount of…

Q: 1. Money has several functions. Enumerate and discuss each function in your own words 2. On the…

A: "Since you have asked multiple questions ,we will solve first question for you.If you want specific…

Q: There would be very few comedians in a barter economy.  Do you agree or disagree with this…

A: The money is used as the medium of exchange in the modern market systems but the case was not the…

Q: What are the advantages of an economy using money as opposed to a barter system of exchange?

A: Money can be defined as any good that is widely accepted for purpose of exchange and repayment of…

Q: As early as the year 1000 CE, nigeria used silver and other metal coins as currency.  This is an…

A: Commodity money is the money that as certain intrinsic value. The intrinsic value is derived from…

Q: Tony received a rebate of RM2,000 for a hybrid car she purchased in May 2020. Tony put this money in…

A: Money consistently has three main functions. They are store of value, unit of account, and medium of…

Q: You use the British pound currency to pay the rent of your apartment. The currency Select one: a.…

A: In economics, money is defined as an asset or set of assets that individuals in the economy use for…

Q: Money without intrinsic value and used as money because of government decree is called, a. commodity…

A: Commodity money: Money whose value is derived from the product from which it is produced is known as…

Q: Using money as a medium of exchange is more efficient than barter because

A: Introduction of money helps to overcome the defects of barter system.

Q: Money functions as:   Question 6 options:   A)  a unit of account.   B)  a store of value.…

A: Money is used for the payment of goods and services.

Q: The use of money is more efficient than barter because the introduction of moneyTop of Form reduces…

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

Q: In a barter economy, where prices are stated in terms of relative prices, with n number of goods…

A: Barter system is the system of in which goods are exchanged for the goods. There is no need of money…

Q: Stephanie deposits $500,000 in Bank of America. Assuming that banks lend out everything that they…

A: Total Deposit = $500,000Required Eeserve = 14%Intrest rate = 2%

Q: What are two advantages and one disadvantages of using cash as THE MAIN medium of exchange?

A: Medium of exchange: -any item that can be accepted as an exchange for goods and services serves the…

Q: Bitcoin is not a suitable form of money because its price is highly variable.  Which one of the…

A: Bitcoin shares most of the features of a store of vale like gold, because of the network of it is…

Q: The problem of double coincidence of want was a huge standing block that subdued the smooth process…

A: Barter economy is one of the earliest system where people traded goods and services in return 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: Personal possession of currency is prohibited in U.S. prisons, although, in practice, prisoners…

A: Intrinsic value is a measure of what an asset is worth. Intrinsic value of money refers to the…

Q: Ali purchases a candy bar with his allowance. This represents using money as A medium of exchange. A…

A: Money can be used for exchanging goods and services. A buyer buys goods and pays money in exchange…

Q: What is barter system in an economy and what are its drawback!

A: According to the given question Actually before the evolution of given money goods were actually…

Q: Show a T-account for a bank when you make a deposit of $2000 into your checking account.Assume the…

A: T-account is a visual representation of double entry book keeping showing assets and liabilities.…

Q: What is one challenge you may face when trying to "barter" for goods? Why would you face that…

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

Q: Bartering is represented by which of the following? A parent gives a teenager a $10 bill in exchange…

A: Bartering is a process by which goods or services are directly exchanged for other goods or services…

Q: What are the inherent disadvantages of a barter system?

A: The old system in which one commodity is exchanged for other commodity is called the barter system.…

Q: A client has $690 (Vat inclusive) outstanding on their account. We would like to barter their…

A: Barter is a system of exchange of goods and services with the help of non-cash consideration…

Q: How does money overcome the problem of barter system explain?

A: Barter system is a system in which goods are exchanged for goods. People give goods or services to…

Q: Match the statements with the appropriate definition. Not all statements will be used. Word bank in…

A: Barter - It is just a pure exchange of goods and services without using money Double Coincidence of…

Q: Before the introduction of money, there was a system of trade called the barter trade. Discuss the…

A: Money refers to the medium of exchange. Money is accepted as payments for goods and services in an…

Q: Which quotation supports the analysis that money only holds value if a government can insure it with…

A: Currency is a medium of exchange in the form of paper or coins, usually issued by a government and…

Q: Calculate M1 and M2 using details from the table given below.     Value (in millions)…

A: M1 money supply includes those monies that are very liquid but M2 money supply is less liquid in…

Q: If raw whole eggs of uniform size  were used as money, which of the following functions of money…

A: If raw whole eggs of uniform size are used as money, they could be used as a medium of exchange as…

Q: Exchanges take less time in a money economy than in a barter economy because a double coincidence of…

A: The money economy refers to the economy where the unit of currency prevalent is the money in hand or…

Q: WRITE THE QUESTION NUMBER AND ANSWER USING CAPITAL LETTER ONLY. 1. Money ________. A. is always…

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

Q: Discuss in detail that how different functions of money (for instance, medium of exchange, a unit of…

A: The barter economy is also known as a commodity for commodity exchange economy because under the…

Q: Fiat money isa. a type of money with intrinsic value.b. a type of money set by government decree.c.…

A: Fiat Money is the most common form of currency used for the transaction which is issued by the…

Q: Treasury Bonds are both a store of value and a medium of exchange. a store of value, but not a…

A: Treasury bond: It is a debt obligation issued by the US government.

Q: Exchanging goods and services for the goods and services is called barter system. True False

A: The barter system is the system that is used in the old method of exchange between two or more…

Q: A stock market price quotation best exemplify money serving as a __    a. a measure of exchange. b.…

A: In a transactional economy, money is an economic unit that acts as a commonly acknowledged method of…

Q: If Mary Smith withdrew $100 from her savings deposit at Bank of America and kept it as cash,…

A: The economics as a study is based upon the idea that the resources which are present with the…

Q: Suppose a group of people decided to create their own economic system with cartons of milk serving…

A: Money: Money can be anything which is accepted by the people as a medium of exchange or in repayment…

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.