--%>
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 : Area below supply curve of resource The

    The area below a resource’s price line although above its supply curve is: (w) consumer surplus. (x) monopoly profit. (y) excess value. (z) economic rent. Can anybody suggest me the proper explanation for giv

    		•
  • Q : Most likely Diminishing Marginal Utility

    Jana chugs 5 big cups of Gatorade in five minutes after winning the marathon. Jana’s marginal utility is much likely to be: (1) Equivalent for each cup as she was very thirsty. (2) Maximized at 3 cups, when she is reaching the equilibrium. (3) Diminishing whenev

    		•
  • Q : New cost-saving technologies adopting

    Firms are under greater pressure to rapidly adopt any new cost-saving technologies when an industry is: (i) closely regulated by government. (ii) controlled by professional managers instead of owners. (iii) dominated by a vast monopoly. (iv) highly co

    		•
  • Q : Demand when total revenue uninfluenced

    When total revenue to a firm is uninfluenced by small price changes, in that case demand is: (1) relatively price elastic. (2) relatively price inelastic. (3) unitarily price elastic. (4) vertical. (5) horizontal.

  • Q : Problem on competitive equilibrium

    The economy consists of an equal number of smokers (S-types) and asthma sufferers (A-types). Good 1 is cigarettes, good 2 is “other stuff.” S-types have the utility function: xS1 + xS

    		•
  • Q : Labor Unions-Public Employees I have a

    I have a problem in economics on Labor Unions-Public Employees. Please help me in the following question. Workers who are now permitted to join unions however who still might not legally strike comprise: (1) Civilian federal employees. (2) Medical pro

    		•
  • Q : Determine Gini index in Loren curve

    Since lifetime earning patterns differ, in that case the Gini index will: (1) continue to rise over time. (2) never reach zero or perfect equality. (3) remain constant. (4) surpass 100 in the near future. (5) be lower for developing countries than for

    		•
  • Q : Rational Investments and Sunk Costs

    Decisions are most obviously less than perfectly rational while: (1) you take a shortcut through a dark alley at 3:00 am to get home faster. (2) a brilliant student majors into art history in place of economics. (3) prisoners on death row in Texas know that tobacco ca

    		•
  • Q : Average expected revenue by selling

    Each firm will shut down whenever the average expected revenue through selling output cannot equivalent or exceed expected as: (i) average total cost. (ii) marginal cost. (iii) average fixed cost.  (iv) average variable costs.

  • Q : Negative marginal utility The economic

    The economic good becomes an economic bad whenever consumption is expanded into an area where: (1) Sellers experience the moral hazard.  (2) Marginal returns are diminishing. (3) Marginal utility is negative. (4) Buyers suffer from adverse choice. (5) Extreme cho

    		•