Assume that Elike raises $5,000 in cash from a yard sale and deposits the cash in his checking account at the Bank of Uchenna. By how much does the money supply immediately change as a result of like's deposit?
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Assume that Elike raises $5,000 in cash from a yard sale and deposits the cash in his checking
account at the Bank of Uchenna. By how much does the money supply immediately change as a
result of like's deposit?
Money supply is defined as all the currency held by the public and other financial instruments in the economy at a time. It includes both cash as well as deposits which are easily convertible into cash.
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- What is money? Explain the definition in terms of the functions of money?Time Which of the following best illustrates the unit of account function of money? Select one: O a. all are correct O b. you pay for your theatre tickets O c. you hold currency even though you don't plan to spend it right away O d. you list prices for candy sold on your websiteExplain the determinants of money supply in an economy?
- Sea shell have been used as money is West Africa. This is an example of Seçtiğiniz cevabın işaretlendiğini görene kadar bekleyiniz. Soruyu boş bırakmak isterseniz işaretlediğiniz seçeneğe tekrar tiklayımız 4,00 Puan fiat money. B legal money. token money. commodity money. D Soru Bog Brat Which of the following is not a form of commodity money? Seçtiğiniz cevabın işaretlendiğini görene kadar bekleyiniz. Soruyu boş bırakmak isterseniz işaretlediğiniz seçeneje tekrar tiklaynız 4,00 Puan A checks B cigarettes precious stones all of the above Bu Soryu Bog arakWhich of the following about saving deposits a-under M2 supply, they they are bank accounts that you cannot white a check from directly. generally moneyl to be kept asided. you can easily withdraw money cash from these aacounts at an automatic teller machine or back d- included in M1 money supply these are the monies held in checking accounts. they are called demand deposits or chekable deposits because the bank must give the deposit holder his money on demand when a check is written or a debit card is used c- included in M1 money supply therefore, very lliquid these are coins and bills that vcirvulate in an economy that are NOT held by the US treasury Federal reserve bank, or in any bank vaults so the cash you havae in your wallet pocket right now d- under M2 money sypplly funds that you invest in where the deposits of many investors are pooled together and invested in a safe way such as short term goverment bods.List and explain 3 of the determinants of the demand for money. Foreach, how might they have changed in the last year due to COVID-19 andhow would this affect demand for money?
- Money demand curve is downward sloping because as interest rate rises, businesses find it less attractive to borrow for the sake of investment. as interest rate rises, liquidity provided by holding money looses itsattractiveness for households, compared to other financial instruments as means of saving. as interest rate rises, it becomes less attractive for households to hold other financial instruments as means of saving as interest rate rises, households will need less money for their daily transactions.Use the graph to explain why changes in the supply of money affect the quantity of money demanded.The characteristic of money as a store of value implies: a. Money will remain valuable from one day to the next O b. None of the Above O C. Money allows us to quote prices and record debt O d. Money is acceptable as payment for goods and services
- Reflective Thinking 4) Veronica's income is $4,000 a month. She depusits $800 in a saving account, buys $300 wuorth of government securities, and leaves the rest for daily transactions. Veronica's transaction money demand is A) $5,100. B) $2,900. C) $3,200. D) $3,700. Answer: B Diff 2 Topic: The Demand for Money Skill: Analytic 307 5) Mary is paid on the 1st of every month and her rent is due on the 15th of every month. This isQ.1.5 Which one of the following statements is NOT true? (a) Money is the most liquid asset.(b) Money is a store of value.(c) Money is a unit of account.(d) Money is another term for income.Q.1.6 Which of the following will cause the demand curve for money to shift to theright?(a) An increase in real Gross Domestic Product (GDP).(b) A decrease in the repo rate.(c) An increase in the quantity of money available.(d) A decrease in the quantity of money available.Q.1.7 A budget deficit occurs when: (a) there is an increase in taxation.(b) government spends less than is generated by taxation.(c) government spending is very high.(d) Government spends more than is generated by taxation.2. What is normal goods? What is ordinary goods? Please indicate whether normal money must be ordinary money.
