--%>
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 : Substitutes and compliments pizza and

    pizza and sausage substitute or compliment wheat and rye substitute or compliment

    		•
  • Q : Examples of Substitution goods

    Illustrations of goods which are close substitutes comprise: (i) Technology and capital. (ii) Motorcycles and helmets. (iii) Chopsticks and forks. (iv) Cowhides and beef. Find out the right answer from the above op

    		•
  • Q : Determine points where is most price

    Of all of the known ranges on given supply curves, the supply of tanks of dehydrated water is most price elasticity among: (i) point a and point b. (ii) point b and point c. (iii) point c and point d. (iv) point d and point e. (v) point e and point f.

    Q : Monopsony Power- Labors demand When

    When wage discrimination is not probable for the first 40 workers this profit-maximizing organization hires, however it can wage discriminate perfectly whenever hiring all the subsequent workers, it hires a net of: (p) Forty workers at an average salary of $700 per we

    		•
  • Q : What is Complements Complements : The

    Complements: The two goods for which a rise in the price of one good leads to a reduction in the demand for other.

    		•
  • Q : Fixed amount of interest An IOU which

    An IOU which pays a fixed amount of interest every year, without a maturity date, that is a: (w) T-bill. (x) fiduciary. (y) Series E bond. (z) perpetuity. I need a good answer on the topic of Economics

  • Q : Break even income by marginal tax rate

    A marginal tax rate of 30 percent and income floor of $6,000 yields a break even income of: (w) $20,000 (x) $1,800 (y) $4,200 (z) $7,800 Hey friends please give your opinion for the problem of

  • Q : Minor Inefficiencies in Monopolistic

    Minor inefficiencies generated since monopolistic competitors differentiate their products may be more than offset through the: (w) increase in economic equity. (x) expansion of the psychologically-meaningful choices obtainable to consumers. (y) reduc

    		•
  • Q : Price discrimination by monopoly power

    A firm can practice price discrimination when this: (i) confronts a perfectly elastic demand curve. (ii) is a pure quantity adjuster. (iii) has several monopoly power and is capable to separate its customers in various groups with different elasticiti

    		•
  • Q : Critics of negative income tax Critics

    Critics of negative income tax (NIT) proposals most generally argue that: (a) economic rents should be taxed at a rate of 100%. (b) in-kind services should be above and beyond generous income assistance. (c) no NIT plan would be flexible enough to sol

    		•