Economics and Statistics > EXAM > Full 104 page summary of Monetary Economics (ECS3701) Module Questions and Answers 2023 (All)
Full 104 page summary of Monetary Economics (ECS3701) Module Questions and Answers 2023
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What is the problem with using barter for transactions? What is the advantage of using money for transactions instead of barter? - -• Requires a double coincidence of wants • Money simplifies an... d increases the number of market transactions • Money promotes economic growth -What are the functions of money? - -• It must... 1. Act as a medium of exchange 2. Serve as a unit of account 3. Serve as a store of value 4. Offer a standard of deferred payment -Are credit cards money? - -no -How is money measured? (Define M1 and M2.) - -• M1: the narrow definition of the money supply: the sum of currency in circulation, checking account deposits in banks, and holdings of traveler's checks • M2: broader definition; includes M1 plus savings account deposits, small-denomination time deposits, balances in money market deposit accounts in banks, and noninstitutional money market fund shares -Are loans an asset or a liability to a bank? Deposits? Reserves? - -• Loans & reserves: assets • Deposits: liabilities [Show More]
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