Q Central Bank is a
Money is a medium of
Money is often defined in terms of the three functions or services that it provides. Money serves as a medium of exchange, as a store of value, and as a unit of account.
The functions of money is that it is a
The most liquid asset among the following is?
One of the measures of money supply is
The process of money creation or credit creation IS done by
The process of money creation, commercial banks are able to create credit, which is in far excess of the initial deposits.
Money is anything that is
Money to be used as a medium of exchange must be universally acceptable. All people must accept a thing as money. Or the government should give it legal sanction. And for performing the other two functions—that is, to be used as a store of value and standard of deferred payment—money should have stability of value. In other words, the value of money should not change often.
Barter system is
One drawback of barter exchange is
The functioning of the barter system requires a double coincidence of wants on the part of those who want to exchange goods or services. It is necessary for a person who wishes to trade his good or service to find some other person who is not only willing to buy his good or service, but also possesses that good which the former wants.
What do you mean by credit creation by commercial banks?