It can mean that the bank is running low on liquidity of
cash. In the banks are required to keep a minimum of liquidity to be able to
give loans and keep the cash flow. In case the bank is running low on liquidity
the customer should inform the central bank and the central bank should fine
the bank for not maintaining the liquidity.
Answer:
a. $12,332.2 billion
b. $3218.9 billion
c. $3093.5 billion
d. $18120.5 billion
Explanation:
a. The value of Consumption Expenditure = Sum of consumption expenditure on all goods and services
= $1,367.1 billion + $2,666 billion + $8,299.1 billion
= $12,332.2 billion
b. The value of Government Expenditure = Sum of expenditure by federal Government and State & Local government
= $1224.0 billion + $1994.9 billion
= $3218.9 billion
c. Gross Investment = Sum of investment and inventories
=Non-residential fixed investment + Residential fixed investment + Change in private inventories
= $2336.2 billion + $645.4 billion + $111.9 billion
= $3093.5 billion
d. Nominal GDP = C + I + G + (X-M)
= $12332.2 billion + $3093.5 billion + $3218.9 billion + ($2264.9 billion - $2789 billion)
= $18120.5 billion
Answer:
1. Jake can easily determine that the price of the computer is more than the price of the vacation. ⇒ UNIT OF ACCOUNT
2. Jake has $1,574 in his checking account. ⇒ STORE OF VALUE
3. Jake writes a check for $1,299. ⇒ MEDIUM OF EXCHANGE
Explanation:
The four functions of money are:
- unit of account: since money is a common denominator, it helps to assign value to different goods and services.
- store of value: you can save money in order to purchase gods and services in the future.
- medium of exchange: you can purchase and sell goods and services using. money
- standard of deferred payment: money allows loans that require future payments of both principal and interest.
Purchase government of course
D. All of these can be changed in the long run
