What is the difference between book money and paper money?

Q: What are six qualities of the ideal money?

A: Money is basically the trustworthy item or a verified thing which is used for the exchange of goods…

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: 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: What happened during hyperinflations?

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

Q: Is demand deposit and current deposit at bank same

A: The bank is the financial institution which deals primarily in the accepting and mobilizing the…

Q: Set forth and describe two of the basic qualities needed for any item to be used as money.

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

Q: hat other alternatives do depositors have to bank deposits and how could that affect the bank’s…

A: Money is placed in banking institutions for safekeeping and is referred to as a bank deposit.…

Q: Explain how productivity, demand, and availability/supply affect the values attached to money…

A: The measure that depicts relationship between quantity of goods or services that are being demanded…

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: 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: Name any item that is a store of value, but does not serve the other functions of money. Explain…

A: "The three main functions of money are a medium of exchange, store of value, and a unit of account."

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: are you in favour or against the abolition of cash?why

A: Abolishing of cash refers to ending the use of print cash and depending on the cashless system. This…

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 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: n economic terms, define what money is.

A: When it comes to economics, money is a commonly used means of exchange for the trade of goods and…

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: Write and explain the functions of money.

A: Money: It is anything which is widely accepted in exchange of goods or discharge of other kind of…

Q: Explain the main characteristics of money?

A: Money refers to a commodity that is accepted as a medium of exchange. Generally, it is in the form…

Q: Are there ways in which money in our society performs social functions as well as economic…

A: Money can be defined as any good that is widely accepted for the purpose of final payment of goods…

Q: What means supply of money?

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

Q: What is the difference between printing money and creating money?

A: In an economy, the task of printing money is undertaken by the government. The central bank decides…

Q: Explain how money evolved over the years?

A: Money is an object that is generally accepted as payment for goods and services and repayment of…

Q: What did they use for money back in Saladin’s day (12th century)?

A: Saladin's day refers to the time period during which Saladin, also known as Salah ad-Din Yusuf ibn…

Q: Define the functions of money. Explain in detail. Thank you.

A: Money is any tangible item or verifiable document that is regularly accepted as payment for goods…

Q: Who is responsible for creating money?

A: The onus for the creation of money in an economy is upon the banks. Banks are the real money…

Q: What's the role of the money in the economy?

A: Money is something that is used to make payments for the commodities purchased or to repay the debts…

Q: What is commodity money? What is fiat money?Which kind do we use?

A: Commodity money is kind of money has an intrinsic face value, its value comes from the material from…

Q: In many casinos, a person buys chips to use for gambling. Within the casino's walls, customers often…

A: Given : In casinos, chips are used as money to purchase goods and services.

Q: Why is money necessary in an economy? What are its functions and how is it created?

A: Money is the source which helps in buying goods and services. It works as a medium of exchange which…

Q: Explain the role of money in society

A: Explain the role of money in society.

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: Describe a national bank note. Explain what they were, how they were created, and why they served as…

A: A national bank note can be described as a type of currency issued by national banks in the country…

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.