--%>
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 : Bonds and Market Interest Rates

    Increases within market interest rates are probably to be related with: (1) people’s increasing desires for vast “nest eggs” for security while they retire. (2) bursting a speculative bubble into prices for hi-tech stocks. (3) increa

    		•
  • Q : Economic profits for most firms I have

    I have a problem in economics on Economic profits for most firms. Please help me in the following question. Economic profits for most of the firms will generally be: (1) The similar as their accounting profits. (2) Bigger than their accounting gains. (3) Less than the

    		•
  • Q : Output From the heterodox approach,

    From the heterodox approach, what options does the enterprise need to produce more output? What effect do these options put on its cost structure?

    		•
  • Q : When price of a good or resource drops

    When the price of a good or resource drops/falls, the demands for: (i) that good or resource rise. (ii) Complementary goods or resources reduce. (iii) Replacement of goods or resources reduces. (iv) Luxury goods and inferior resources drop/fall.

    		•
  • Q : Firm under monopoly A firm under

    A firm under monopoly a price maker by the reasons shown below:A) The monopolist is a single seller of the product in market. Therefore it has full control over supply.B) There are no close replacements of the monopoly product,

    		•
  • Q : Taxes on pure land rent Taxes on pure

    Taxes on pure land rents: (1) especially distort economic behavior. (2) are forward shifted to consumers. (3) transfer income from the public treasury to private landowners. (4) are allocatively neutral relative to most alternative taxes. (5) are over

    		•
  • Q : Income effect on leisure Can someone

    Can someone please help me in finding out the accurate answer from the following question. The individual’s labor supply curve is negatively sloped [that is, backward-bending] in the range of wages if the: (i) Demand for goods exceed the demand for leisure. (ii)

    		•
  • Q : Match price cuts but avoid price hikes

    A firm’s perception which competitors will match price cuts but avoid price hikes yields: (w) price leadership behavior. (x) limit pricing structures. (y) kinked demand curves. (z) monopolistic competition. Can anybody sugges

    		•
  • Q : Relatively elastic of demand in

    While a price hike yields a decline within total revenue, in that case the demand faced through the producing firm: (w) relatively elastic. (x) relatively inelastic. (y) unitarily elastic. (z) inferior. Can anybody

    		•
  • Q : Profit-maximizing level of output When

    When LoCalLoCarbo, the favorite corporation of fad dieters, produces adequate output to minimize its average total costs that will: (1) produce more than the profit-maximizing level of output. (2) concurrently minimize its average variable cost. (3) p

    		•