--%>
Assignment Help - homework help

Monetary liability

All currency issued by central bank is its monetary liability. Explain how?

Answer: The Central Bank is grateful to back the currency with assets of equivalent value. Such assets generally include of gold coin, foreign securities, gold bullion, and the domestic government’s local currency securities. The country’s Central government is generally authorized to borrow money from the central bank. Government does this, by selling local currency securities to the central bank. Whenever the central bank acquires such securities, it issues currency. Putting and withdrawing currency into and from the circulation is as well the job of central bank.

   Related Questions in Microeconomics

  • Q : Costs and Operating Decisions The firm

    The firm will stop the progress of it operations unless the firm’s owner(s) anticipate that future revenues will: (1) Produce an economic profit. (2) Cover the predicted totals of all future explicit and implicit costs. (3) Yield an accounting profit. (4) As wel

    		•
  • Q : Determine possibly accurate order of

    Which of the given in lists of taxes or taxed goods is possibly in accurate order from most backward-shifted to most forward: (w) Tobacco, property, general sales and payroll. (x) Land, payroll, tobacco and property. (y) Tobacco, payroll, corporate in

    		•
  • Q : Limitation in Lorenz curve A Lorenz

    A Lorenz Curve cannot be used to demonstrate scientifically how the: (w) income is distributed among members of society. (x) wealth is distributed in between members of society. (y) taxes alter the distribution of income. (z) income must be distribute

    		•
  • Q : Maximizing consumer and adjusts consumer

    Can someone help me in finding out the right answer from the given options. Zeus got one million dollars for winning every event in current Olympics. In past, he would have frivolously exhausted his winnings on the lightning bolts, however after studying economics, he

    		•
  • Q : Dilemma on labor monopsonist The labor

    The labor monopsonist will hire labor up to the point where the marginal: (i) Revenue product of the labor equivalents the wage. (ii) Resource cost of labor equivalents the salary. (iii) Revenue product of labor equivalents its marginal resource cost. (iv) Resource co

    		•
  • Q : Adverse Selection as a classifiable

    Which of the given below conditions is most evidently classifiable as the adverse selection? (i) The company manufactures a miracle weight loss solution guarantee enduring weight loss, however in realism the solution only rids surplus water weight for

    		•
  • Q : Regulatory barrier to entry Billy

    Billy recently invented and in that case patented a motorized flying skateboard which transports people to and from their destinations in less than half the time this would take to ride or drive a bus. Billy is protected from competition from a: (1) regulatory barrier

    		•
  • Q : Problem on shortages or surpluses of

    The market is cleared when there are: (i) Buyers left waiting in line. (ii) Surplus supplies of unsold goods. (iii) No surpluses or shortages. (iv) Tendencies for the prices to increase. Can someone please help me in finding out th

    		•
  • Q : Inverse relationship in Law of Demand

    The law of demand signifies to: (i) The direct relationship accessible between quantity and prices demanded. (ii) The inverse relationship accessible between quantity demanded and opportunity cost. (iii) How demand shifts due to modifications in price

    		•
  • Q : Correcting deflationary gap Describe

    Describe the role of given in correcting deflationary gap in an economy. A) Govt. ExpenditureB) Legal Reserve Ratio

    		•