(Answered) Outline and Describe the functions of money

Management Studies

1) Outline and Describe the functions of money

2) Distinguish between commodity money and fiat money

3) Suppose the Required Reserve Ratio is10% and there is a deposit in the banking system of $2000. Calculate the following :a) Deposit multiplier

b)Required Reserves c) Excess Reserves(the amount of loans that can be made)

4) Discuss the general functions of the central bank

5) Suppose the Reserves bank buys bonds, what would happen to the supply in the economy?

6)"Interest rates affect credit conditions "discuss this statement with respect to consumption,investment and capital inflows

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