Log in
Economics
5
answers
0
watching
266
views

What is the difference between fiat and commodity money?

A. Fiat money allows an economy to easily expand the money supply, whereas it is more difficult to expand the supply of commodity money.

B. Tying an economy's money to a commodity has no dangers, whereas the use of fiat money is very dangerous.

Watch
5
answers
0
watching
266
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Already have an account? Log in
Share
Darryn D'Souza
Darryn D'SouzaLv10
28 Sep 2019
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

The currency standard in the United States is called fiat€ which basically means that money has no security backing. In other words, our government has the ability to print as much money as they feel is necessary.

What would happen to each of the following economic variables: M1, interest rates, inflation and wages, if the government increased the money supply by 20 percent per year?

In general, what impact does increase or decreasing the printing of money have on the economy (in your discussion, use the concepts of the demand and supply of money). Use the demand and supply graph to explain your answer.

Question 9

In which of the following situations would money function as a store of value?

a. The wife checks the balance in the family savings account

b. In all of the above

c. The husband checks the prices at the local market

d. You take out a loan at the local bank

Question 10

M2 money is?

a. All demand deposits plus all currency and coin in circulations

b. M3 money plus all the currency and coin in the circulation

c. M1 plus near money

d. M3 plus near money

Question 11

Of all the parameters that influence effective demand, the most unstable overtime is?

a. Government Expenditure

b. Investment

c. Savings

d. Consumption

Question 12

People hold money?

a. to have money to take advantage of economic opportunities as they arise

b. to have money for purchases in between receipts of income

c. for all of the above purposes

d. to have money in case of unforseen emergencies

Question 13

The choice between near money and money is?

a. Near Money is not directly spendable, whereas money is directly spendable

b. Near money is fiat money, whereas money is not

c. None of the above

d. Near money consist of all deposits in commercial and saving banks, whereas money does not include deposits

Question 14

The largest single component in terms of total value in M1 money supply is?

Select one:

a. Coin

b. saving deposits

c. Demand deposits

d. Currency

1. Suppose the bank of Canada wanted to increase the supply of money. How could it use monetary policy to achieve the goal?
2.The money demand curve is shown in a graph with an interest rate on short term assets on the vertical axis. Why use short-term interest on the vertical axis and not the rate of return on other financial assets?
3 what will happen to the money supply is Jamie withdraws $400 from her chewing account and the reserve ratio is 5%
4. Using gold as an example, what is the difference between commodity money and commodity-backed money?
5. Suppose the annual inflation rate at 7% and 3% of the labor force is unemployed. If you were on the governing council of the bank of Canada, what action would you prescribe? How would this affect the economy, the inflation rate, and the unemployment rate?

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in