QUESTION 1 1. Checks money and credit cardsmoney. are: are are not; are are not;
ID: 2494740 • Letter: Q
Question
QUESTION 1 1. Checks money and credit cardsmoney. are: are are not; are are not; are not are: are not QUESTION 2 1. Checks money and checking depositsmoney. are; are are; are not are not; are are not; are not QUESTION 3 1. An open market purchase of securities by the Fed decreases banks' reserves and increases banks' securities decreases banks' total assets. involves a bank purchasing government securities from the Fed. increases banks' reserves and decreases banks' securities. " QUESTION 4 1. During periods of inflation, which function of money is most severely affected? means of payment store of value medium of exchange unit of accountExplanation / Answer
Q.1. Checks "are" money and Credit card "are" money. Because these two are included in Fiat money.
Q.2. Checks "are " money and Checking deposits "are" money as checking deposits are included in M1 definition of money.
Q.3 An open market purchase by Fed increases bank deposits and decreases securities as in open market central bank makes purchases of securities at lower price to inject moremoney in market.
Q.4. During periods of inflation general prices increases to which with the same value of money one gets lesser quantity of good that he was geeting more befor inflation. Thus unit of amount function gets most affected.
Q.5. Money is created by banks taking in deposits. Because with such deposits investments are made and money gets multplied may a times.
Q.6. An open market operation occurs when Federal Reserve (that is a central bank) purchases or sells securities in open market. Hence individuals and banks can also participate.
Q.7. A decrease in Real GDP decreases demands for money because with decrease in GDP less income will be generated less demand will be made and hence demand for money will be made.
Q.8 Monetary Policy is conducted by only Federal Reserve.. Only a central bank of an economy has powers to perform monetary policy.
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.