identify therelationship between money credit and financial institution

Q: what is the benefit if the commercial banks create new money?

A: Money refers to the economic unit that is used to make exchanges and to set the value of any…

Q: What happened during hyperinflations?

A: Inflation: The term inflation indicates the increase in the general price level of commodities in an…

Q: Is a bank failure different from the failure of any other business?

A: A bank failure is the closing of an insolvent bank by a federal or state regulator. A bank fails…

Q: can you find out major differences between large banks and small banks. Which have had higher ROAs?…

A: Following below are the major Differences between large bank and small banks: A. All those banks are…

Q: WHAT ARE TOOLS USED BY BANK OF CANADA TO HAVE MONETARY CONTROL?

A: Monetary policy is the management of money supply in the economy. It affects the inflation and…

Q: Difference between Central bank of the Philippines and Bangko Sentral ng Pilipinas.

A: Central banks provide monetary stability within an economy , every country have their own central…

Q: How do we measure the amount of money in an economy?

A: In macroeconomics, money is important as it is used to carry daily transactions and for making…

Q: Central Bank act as a lender of the last resort. How?

A: Central bank is an apex institutions in the financial system of a country. Central bank operates…

Q: What are the advantages and disadvantages of governments issuing small denomination coins.

A: Government coins are coins that are produced and distributed by a national government or central…

Q: what is the basic function of the Fdic and NCAA? how do they perform this function

A: The FDIC(Federal Deposit Insurance Corporation) is a federal agency which is free guaranteeing…

Q: If federal deposit insurance is provided to banks at no cost to them, who pays when an insured…

A: Federal deposit insurance is a government-backed program in the United States that provides…

Q: How do you think the banking sector has evolved overtime?

A: Banking, health, and education are the major sectors that can describe the situation of a nation.…

Q: What is the risk if a bank does not diversify its loans?

A: The banks are the biggest financial institutions that operate in the country and indulge in…

Q: What means supply of money?

A: Meaning of Exchange Rate: The term exchange rate refers to the situation under which a particular…

Q: Identify and briefly explain the four specific functions of money that economists have identified?

A: Medium of Exchange: The medium of exchange used to facilitate the buying and selling of goods and…

Q: What are some measures to remove the defects of Indian money market?

A: Introduction - When compared to advanced markets such as New York and London Money Markets, the…

Q: What are the credit policy of reserve Bank of india (1994-95). Write any seven policies.

A: The Reserve Bank of India (RBI) is the central bank of India, which started working on Apr. 1, 1935.…

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 the real flow and money flow

A: Money is the medium of use as a payment after purchasing the products or services.

Q: What is the difference between commodity money and fiat money? Is there a scenario you can think of…

A: Money is used for exchange purposes. Money is also used as unit of account and store of value.

Q: Banks should have to hold all of their deposits.  True or False?  Explain.

A: Banks provide financial services to the people by accepting their deposits and keeping them safe…

Q: Explain how a central bank can control credit through bank rate and open market operation

A: Open Market Operation is a traditional way to control the credit in the market used by the central…

Q: use a diagram to illustrate the demand and supply of money

A: Money: Money is a commodity which is generally accepted as medium of exchange for all goods and…

Q: what is the defintion of money? If it is an economic concept, define the concept and describe it key…

A: Money is a good that is widely acknowledged as a means of economic exchange.It serves as the medium…

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: Explain how banks create money using your own example of a T-account.Define the deposit and RRR…

A: A deposit is a term used in finance to describe money deposited in a bank. A deposit is a financial…

Q: A bank's liquid assets consist of?

A: Currencies that are easily converted into other currencies are the liquid assets of a bank. These…

Q: Who are the members of the Monetary Board?Please describe

A: The monetary board conducts monetary policies and regulates the money supply and level of inflation…

Q: inflation on Moneys if it is not invested

A: Inflation refers to increase in average price of goods and services in an economy.…

Q: Draw a diagram to explain the link between money supply and inflation.

A: Inflation is caused by growing the cash flow more than economic production grows and create price…

Q: Why have banks been losing cost advantages in acquiring funds in recent years?

A: Banks have to bear an amount of cost to acquire the funds, but there are some cost advantages that…

Q: Fractional Banking allows

A: Fractional borrowing refers to a kind of a banking system within which are required to keep a…

Q: What is the danger if the bank has low level of capital ?

A: A bank is a financial body which perform function of receiving deposit, provide withdraw and give…

Q: Why did the Bank of England in 2021 set bank rates to be maintained at 0.1%?

A: Fiscal and monetary policy are important for economy. In Democratic government, it has been seen…

Q: How does the increase of prices of goods affect the purchasing power of money?

A: Purchasing Power:-    The quantity of goods that can be purchased with one unit of a currency…

Q: Discuss the major differences between large banks and small banks. Which have had higher ROAs? Why?

A: Following below are the major Differences between large bank and small banks: A. All those banks are…