Question
1. What are the supply schedule and the supply curve and how are they related? 2. What are demand deposits and why should they be
1. What are the supply schedule and the supply curve and how are they related?
2. What are demand deposits and why should they be included in the stock of money?
3. What characteristics of an asset make it useful as a medium of exchange? As a store of value?
4. What are reserve requirements? What happens to the money supply when the central bank raises reserve requirements?
5. "Shortage of excess of money supply can be a serious matter to a developing country". Based on this statement, explain any tools of monetary policy that can be used to overcome this problem.
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