--%>
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 : Feature of pure competition NOT a

    NOT a feature of pure competition would be: (w) identical products of firms. (x) long-run freedom of entry and exit. (y) large numbers of sellers and buyers. (z) price making behavior by individual firms. I need a

    		•
  • Q : NOT operating area of monopolistic firm

    Monopolistic competitors within long-run equilibrium do NOT operate where: is (1) MR = MC. (2) P = ATC. (3) P > MC. (4) MSB > MSC. (5) economic profits are realized. How can I solve my Economics

  • Q : Supply curve of a purely competitive

    A purely competitive firm has a supply curve which is: (w) perfectly elastic. (x) relatively inelastic. (y) flatter than its demand curve. (z) upward sloping as output increases. Hello guys I want

    		•
  • Q : Total revenue of monopolistically

    A particular monopolistically competitive firm’s total revenue is probably to increase when this: (w) increases the prices of its products and consumer demand is elastic. (x) maintains its original price even if all of its compe

    		•
  • Q : Transferred Funds in Financial Markets

    Financial markets are markets in that funds are transferred from: (w) financial investors or institutions which have an excess of available funds to people or firms which have a shortage. (x) people who have a shortage of obtainable funds to people wh

    		•
  • Q : Price taker and a quantity adjuster

    When the world price for this year’s wheat crop is $10 per bushel, and Del, a profit maximizer one who owns the biggest wheat farm within North Dakota: (i) is a quantity taker and a price adjuster. (ii) cannot generate an economic profit into th

    		•
  • Q : Substitution problem on consumption I

    I have a problem in economics on Substitution problem on consumption. Please help me in the following question. Teddy forever eats peanut butter and jelly sandwiches for lunch as he should live on $20 dollars a week. Jelly jumped in price and, to plea

    		•
  • Q : Should third World limit pollution ‘In

    ‘In developing countries there are some controls on aspects of pollution like exhaust fumes. How would you evaluate whether these countries, from their point of view, must invoke legislation to enhance the atmosphere in these respects?’

    		•
  • Q : Monopoly a monopolist has two plants

    a monopolist has two plants with two different cost functions.given output for one plantis given how do calculate output for the other plant?

    		•
  • Q : Needs of families by poverty line

    The official “poverty line” computed by the federal government is the income level needed to meet the perceived fundamental needs of families along with differing characteristics as size, location, etc. Therefore, it is based on: (1) a rel

    		•