Explain each of the following types of deposit accounts: a.demand deposit b.certificate of deposit c.money market demand account

Q: What is the biggest challenge and/or the biggest opportunity in managing a bank now and into the…

A: Banks had every reason to believe that the decade following the global financial crisis would be…

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: 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: 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: 1. When someone moves money from a saving account to a demand deposit, the size of M1 will: a.…

A: M1 cash supply incorporates those monies that are extremely fluid like money, checkable (request)…

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: What are the complications in the process of deposit expansion and deposit contraction?

A: The deposit expansion is the money created by the reserve banking, in which the money that is…

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: On a​ bank's balance​ sheet, ________ are assets and​ ________ are liabilities.   A.transactions​…

A: Answer: The reserve and loans are assets for banks whereas the deposits are considered liabilities…

Q: Consider the following data: savings deposits = $900 billion, currency (held outside banks) = $453…

A: Money supply is all the currency and other liquid instruments in a country's economy. The various…

Q: Which of the following is a liability of  bank loans reserves securities deposits

A: Liability means what is owe to others.

Q: How do banks create money?  Please explain

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

Q: How is a bank able to lend more money than it has in reserves?

A: Banks depend on a fractional reserve banking due excess lending of actual deposits on hand by banks…

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

A:

Q: A bank's reserves include its Multiple Choice vault cash and deposits with the Federal Reserve.…

A: Every bank is required to hold reserves by the central bank

Q: Billions of Item Dollars Checkable Deposits Small Time Deposits Currency Money-Market Mutual Funds…

A: M1, M2, M3,M4 are measures of money supply where M2 includes currency with public, checkable…

Q: Use a diagram to describe the structure of a bank bill.

A: Bank, an institution that deals in cash and its substitutes and provides alternative services…

Q: What are demand deposits and why should they beincluded in the stock of money?

A: Demand deposits are the funds that are deposited in the bank account which are payable on demand.…

Q: Differentiate between bank money and central bank money.

A: A central bank is a bank for bankers. The financial system is often managed by an institution that…

Q: Use the following table on the components of money in a hypothetical economy to do exercises 11 and…

A: Money supply is categorize into four group in United States, M1, M2, M3 and M4 which are called…

Q: What is the main difference between banks and other financial institution, how is it works?

A: Financial intermediaries helps in channelizing the funds from savers to borrowers. It acts as the…

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: Money is "created" when a depositor gets cash from the bank's ATM a bank accepts deposits…

A: Money is the common medium of exchange which is generally accepted in the whole country and backed…

Q: In the United States, which of the following systems was established to be in charge of money?Choose…

A: The United States of America's central bank is the Federal Reserve which is also known as the Fed.…

Q: What is bank,types of banks ,functions of bank and how banks perform their functions & explain…

A: Banks financial institutions that manage the financial operations in the country through saving,…

Q: Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the…

A: Given  Required Reserve Ratio = 8% or 0.08

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: which of the following is included in M1?

A: Money supply is classified into various categories as M1, M2 ,M3 and in some countries there are…

Q: Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the…

A: The assets of the bank include the reserves, loans and the securities which are the income that the…

Q: What will happen when the Bank Rate will be reduced? Cost of borrowing decreases. Credit…

A: Option (1).

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: What accounts for the difference between the two curves shown in the figure? Bank interest 12% rates…

A: The graph which is given in the question above, shows that there are two types of interest rates :…

Q: Which of the following activities will affect a bank’s required reserves? why? a. The local Girl…

A: Required reserve: It is the minimum amount of cash that banks keep on hand.

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: What is a bank? What are its functions in our economy?

A: Banks are heavily regulated in most jurisdictions because they play such a critical role in…

Q: You are been asked by your younger sister to explain what banking is, write brief description of the…

A: Money belonging to an entity is safely stored in a financial institution known as a bank in the…

Q: Banks don't lend out all of the funds deposited because:     A) they need to make more…

A: Bank is financial institution that controlled and monitor by the central bank of the respective…

Q: xamine the causes of the recent bank failures in Ghana. How did the Bank of Ghana deal with the…

A: The banking sector of Ghana has witnessed severe bank crises which have led to bank failure between…

Q: What is the maximum amount of new loans that this bank can make?

A: A bank can give loans to the public only after keeping some reserves out out total demand deposits.…

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…

Q: If the public deposits $200 billion of currency into savings deposits, then the value of: A. M1…

A: M1 component of money supply includes currency and coins in circulation. The currency which is not…

Q: How does the banking system create money? Explain by giving an example.

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