Who benefits when the Bank of Canada lowers interest rates? Who benefits when interest rates rise? Explain how each policy could directly affect your life and your consumer decisions.

Q: why can't food be used as a form of money?

A: Money is anything which is generally accepted by the people in the economy and used for the purchase…

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: True or False 2. The Fed uses the monetary policy tool of open market operations to affect interest…

A: Open Market Operations: It is one of the monetary policy tools with the central bank. Under which…

Q: Loans are more available when the reserve requirement is low. True or fals

A: Reserve requirement (RR) is the minimum amount of funds that needs to be hold by the commercial…

Q: Which theory states, the price for any good/service is driven by factors of supply and demand as…

A: The law of demand shows the negative relationship between price and its quantity demanded assuming…

Q: What entity decides what the reserve requirement is?

A: Reserve requirement is the monetary amount that commercial bank has to keep with the federal Bank as…

Q: How would a fall in the value of the pound sterlingaffect British consumers?

A: The foreign exchange rate determines the price of the currency of a domestic country when exchanged…

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: why do government keep banks small?

A: In economics, we study how scarce resources are used by decision-makers to satisfy the unlimited…

Q: Banks can make loans as long as they have   excess government securities. required reserves.…

A: Commercial banks have actual reserves which is the sum of excess reserves and required reserves.

Q: How many banks failures occurred in the United States during 2021?

A: A bank failure occurs when a bank becomes insolvent. Under such circumstances, the bank is unable to…

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: In ancient Greece, why was gold a more likely candidate for use as money than wine?

A: Money is something which is has a general acceptability and is a common medium of exchange to buy…

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: Let's say that you have put $1,000 in your savings account at a local financial institution, and an…

A: 1.The employee is correct, of course.The reason for this is that the money you have deposited in…

Q: A bank can make profit by: a)borrowing money from the government at 0% interest. b)giving you a…

A: Banks generate profits primarily through the intermediation process, where they accept deposits from…

Q: Without compounding and exponential growth rates, the value of money today would be the value of…

A: In economics, people make an exchange of goods and services to get something in return. Sometimes,…

Q: The financial system must ensure the availability of efficient credit facilities to allow greater…

A: Credit Facilities: Credit facilities are loans that businesses take to run their operations. A…

Q: How does the Federal rate affect mortgage rates?

A: A mortgage is simply a house loan and a mortgage rate is the interest rate on such a loan. Through…

Q: Could corn be used as commodity money?

A: Commodity Money: The commodity money refers to the commodities that were used as the medium of…

Q: What are some factors to consider when choosing a bank?

A: Banks are the financial institutions that are very important in every economy. They are the main…

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: Answer Bank improving banks' profits price stability high employment increasing the size of the…

A: Monetary policy deals with the money supply circulation in a country.

Q: Using an example explain what the shadow banking system is and how it works.

A: The shadow banking system is not like long-established banks and lending institutions because these…

Q: The cost of money is established and measured by an interest rate. True or false?

A: Answer - Cost of Money -  Cost of the money is amount of interest can be charged on the money…

Q: As a lender/depositor, how would you compare time to demand deposits?     Demand deposits are more…

A: Meaning of Demand Deposit: The term demand deposits refer to the situation under which an…

Q: The commercial banking system has excess reserves of $8,000. Then new loans of $30,000 are…

A: Given: Excess reseves=$8000 new loans=$30000 To find: Required reserve requirement ratio

Q: Draw or write a diagram showing how the money you put into bank account works to the benefit of the…

A: As an individual when the money is put in the bank account it would benefit anyone as the money is…

Q: Do banks create more money, more time, or both? Explain your answer.

A: Banks are the financial institutions that provide various financial services to the citizens of an…

Q: Why do bonds trade at prices different than par

A: Bond:- A bond is regarded as a definite-income asset because it pays bondholders a guaranteed return…

Q: What are the main functions of banks? Explain the role played by commercial banks in the economic…

A: Function of commercial banks:-  Primary Functions 1) Accepting deposits:- Primary function of…

Q: what it means for banks to engage in maturity transformation and what are the risks associated with…

A: A type of transformation whereby a bank or any similar institutions takes advantage of the upward…

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: Write two to three paragraphs explaining how J. P. Morgan helped the U.S. economy. Your response…

A: Morgan had deep and extremely beneficial connections with the London financial world as a result of…

Q: Buying a cup of coffee with a dollar bill represents the use of money as a

A: (Q) Buying a cup of coffee with a dollar bill represents the use of money as a (Q) Buying a cup of…