Fiat money - Study guides, Class notes & Summaries

ECS301 [New ECS3701] SELECTED EXAMINATION QUESTIONS AND SUGGESTED SOLUTIONS MAY/JUNE 2011 Part 1: Definition and functions of money (15 Marks) Answer all questions in part 1. 1.1 List and explain the three primary functions of money. (2) Medium of Exchange: money serves as a medium of exchange allowing it to be used as payment for goods and services. As such it promotes economic efficiency by reducing the time taken for transactions to take place. Unit of Account: used to measure valu...

absolute advantage - when one person or country can produce goods with a smaller input of resources than another business cycle - expansion, peak, recession, trough capital gains - the increase in value of capital assets cause market failures - monopolies, taxes, regulations closed shop laws - require that in certain industries, workers have to be members of a labor union comparative advantage - when one producer has a smaller opportunity cost of producing a good or service compared to an...

Fiat Money - Money that isn't tied to reserves such as gold, rather is guaranteed by the government's trustworthiness. Has no intrinsic value. Exists in currency bills form and bank deposits. M1 - The sum of all money held by businesses and individuals (incl. traveler's checks) and checkable deposits. M2 - The category that contains all funds included in M1, as well as savings deposits, small-time deposits, money market funds, and other deposits. M3 - The classification of money th...

ctional unemployment union organizes workers in one of the markets, then the wage rates will tend to: - answerrise for union jobs, and fall for the nonunion jobs Efficiency wages: - answerincrease structural unemployment by keeping wages above equilibrium Medium of Exchange - answerAn item buyers give to sellers when they want to purchase g&s Unit of Account - answerThe yardstick people use to post prices & record debts Store of Value - answerAn item people can use to transfer purchasing...

During the colonial period, commodities that could only be exported legally to Britain were known as correct answers Enumerated goods New Englands imports came primarily from correct answers The United Kingdom New England's exports went primarily to correct answers The West Indies The Southern Colonies' exports went primarily to correct answers The United Kingdom In terms of exports from the colonies _________ and ____________ were the top two trading partners correct answers...

FINC 409 Ch. 5 Study Exam Questions & Answers. The U.S Treasury is primarly responsible for: - CORRECT ANSWER debt management Examples of automatic stabilizers are: - CORRECT ANSWER unemployment insurance Automatic stabilizers include all of the following: - CORRECT ANSWER unemployment insurance welfare pay-as-you-go tax system Almost all Treasury disbursements are made by: - CORRECT ANSWER check drawn against deposits at Federal Reserve Banks When the United States Treasu...

acuity sharpness (particularly of the mind or senses) delineate to portray, sketch, or describe in accurate and vivid detail; to represent pictorially Brainpower Read More Previous Play Next Rewind 10 seconds Move forward 10 seconds Unmute 0:01 / 0:15 Full screen depraved marked by evil and corruption, devoid of moral principles enervate to weaken or lessen the mental, moral, or physical vigor of; enfeeble, hamstring esoteric intended for or underst...

Champions Real Estate Finance Final Exam With Correct Answers 2024 Loan-to-Value Ratio (LTV) -CORRECT ANSWER-The percentage of the lesser of the appraised value or sales price that the lender will lend. ex: If a borrower is approved for an 80% loan, it means that the lender will loan up to 80% of the sales price or appraised value, whichever is lower. Package Mortgage -CORRECT ANSWER-Includes both real and personal property ( fixtures and furnishings) Blanket Mortgage -CORRECT ANSWER...

QUIZ 1 1. When money prices are used to facilitate comparisons of value, money is said to function as a ________. Select one: a. medium of exchange. b. payments-system ruler. c. store of value. d. unit of accounT 2. Budget deficits are important because deficits Select one: a. always cause interest rates to fall.2xx? b. cause bank failures.??? c. always cause prices to fall. d. can result in higher rates of monetary growth. 3. Introduction of checks into the payments system...

aggregate demand - The total of all goods and services that all households, companies, and the government are willing and able to buy at any price in a given period of time balance of trade - The difference between a country's imports and exports benefits - Things of value that employers provide which are usually not taxable business cycle - A series of economic expansions and contractions cartel - A _____________ is a group of providers that engage in collusion to increase profits compar...