Fiscal

Question 1

What is monetary policy

Answer 1

concened with the management of interest rates and the total supply of moncy in circulation; to ersure money circulations not tuo much/little

Question 2

collective term for the taxing spending of the goverment

Answer 2

Fiscal policy

Question 3

Functions of money

Answer 3

medium of exchange (no need for barter)
• unit of account, (to measure quins 7 losses, value of items, ete)
• store of value,

Question 4

Commodity

Answer 4

value comes from a commodity of wnich it is made.consts of objects that have value in themselves

Question 5

Fiat

Answer 5

mesam of payment reognized by a legal system to te valid for finariguion

Question 6

Feduciary

Answer 6

value on the confidence that it will be accepted as a medium of exchange, issuer promises beaver that it will be exchanged as requested needs trust

Question 7

Plaatic

Answer 7

credit card -borrowing trom the bank
• debit card - attached to savings/checking account

Question 8

Should stay the same value

Answer 8

Stability

Question 9

to better evaluate the Supply of monay in economy

Answer 9

Measures of money

Question 10

M1

Answer 10

Narrow

Question 11

M2

Answer 11

Intermediate

Question 12

M3

Answer 12

Broad

Question 13

stabilize overall level of output i supply control

Answer 13

Monetary policies

Question 14

Contractionary

Answer 14

Used during high inflation and to lower demand

Question 15

expansionary

Answer 15

Decreases demand and money supply

Question 16

Reserve requirements

Answer 16

Funds reserved for withdraws

Question 17

Discountrate

Answer 17

Interest local banks need to pay

Question 18

to Show
depts

Answer 18

Bomds