Podcast
Questions and Answers
What is the primary function of a central bank in the financial system?
What is the primary function of a central bank in the financial system?
What is the purpose of a unit of account in the financial system?
What is the purpose of a unit of account in the financial system?
What type of money has intrinsic value?
What type of money has intrinsic value?
What is the primary function of a medium of exchange in the financial system?
What is the primary function of a medium of exchange in the financial system?
Signup and view all the answers
What is the purpose of a financial system in an economy?
What is the purpose of a financial system in an economy?
Signup and view all the answers
What is the primary benefit of using money as a store of value?
What is the primary benefit of using money as a store of value?
Signup and view all the answers
What is liquidity in the context of assets?
What is liquidity in the context of assets?
Signup and view all the answers
What is the main difference between money supply and money stock?
What is the main difference between money supply and money stock?
Signup and view all the answers
What is included in M2, but not in M1?
What is included in M2, but not in M1?
Signup and view all the answers
What is the term for the demand for money driven by transactions like trade of goods and services?
What is the term for the demand for money driven by transactions like trade of goods and services?
Signup and view all the answers
What is the price of money?
What is the price of money?
Signup and view all the answers
What is the characteristic that makes legal tender money the most liquid asset?
What is the characteristic that makes legal tender money the most liquid asset?
Signup and view all the answers
What is the primary difference between the nominal interest rate and the real interest rate?
What is the primary difference between the nominal interest rate and the real interest rate?
Signup and view all the answers
What is the term for a sustained increase in the overall price level?
What is the term for a sustained increase in the overall price level?
Signup and view all the answers
What is the purpose of reserve requirements in monetary policy?
What is the purpose of reserve requirements in monetary policy?
Signup and view all the answers
What is the term for prices rising 20 to 50 percent per year for three years or more?
What is the term for prices rising 20 to 50 percent per year for three years or more?
Signup and view all the answers
What is the primary effect of a Central Bank selling government bonds on the money supply?
What is the primary effect of a Central Bank selling government bonds on the money supply?
Signup and view all the answers
What is the maximum amount that a person, company or entity can borrow?
What is the maximum amount that a person, company or entity can borrow?
Signup and view all the answers
What is the purpose of a higher discount rate set by the Central Bank?
What is the purpose of a higher discount rate set by the Central Bank?
Signup and view all the answers
What is the term for the government's management of the money, credit, and banking system of the economy?
What is the term for the government's management of the money, credit, and banking system of the economy?
Signup and view all the answers
What is the effect of an increase in reserve requirements on the money supply?
What is the effect of an increase in reserve requirements on the money supply?
Signup and view all the answers
What is the impact of paying higher interest on reserves on the money supply?
What is the impact of paying higher interest on reserves on the money supply?
Signup and view all the answers
What is the term used to describe the increased provision of financial services to all levels of society?
What is the term used to describe the increased provision of financial services to all levels of society?
Signup and view all the answers
What is the primary limitation of the Central Bank's control over the money supply?
What is the primary limitation of the Central Bank's control over the money supply?
Signup and view all the answers
What is a characteristic of Shallow Finance?
What is a characteristic of Shallow Finance?
Signup and view all the answers
What is a goal of Financial Development's Deep Finance Strategy?
What is a goal of Financial Development's Deep Finance Strategy?
Signup and view all the answers
What type of financial process reduces reliance on the fiscal process, foreign aid, and inflation?
What type of financial process reduces reliance on the fiscal process, foreign aid, and inflation?
Signup and view all the answers
Where do Informal Credit Markets get financed from?
Where do Informal Credit Markets get financed from?
Signup and view all the answers
What is one of the benefits of enhancing the accessibility of savings for all types of domestic investors?
What is one of the benefits of enhancing the accessibility of savings for all types of domestic investors?
Signup and view all the answers
