Ecs 3701 - Study guides, Class notes & Summaries

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ECS 3701: Exam Pack 10/11/2018 Question 1 1.1) a. Money Income Money is a stock, it is a certain amount at a given point in time. Page 53 TB or Page 9 Notes Income is a flow of earning per unit of time. b. Money is a liquid asset that can be used to store wealth. Wealth includes several assets which can either be financial or real assets. 1.2) Functions of money: 1. Medium of Exchange Money in the form of currency or checks is a medium of exchange; it is used to pay for goods an...

ECS3701 EXAM PACK 1 | P a g e ECS3701 Oct/Nov 2017 1. Explain the following terms i. Inflation targeting Monetary policy strategy that involves public announcement of a medium-term numerical target for inflation. ii. Interest rate risk The riskiness of earnings and returns that is associated with changes in interest rates iii. Monetary Policy Monetary policy can be defined as the measures taken by the monetary authorities to influence the quantity of money or the rate of interest ...

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