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prohojiy [21]
3 years ago
8

The part of the money supply produced by the private banking system is called by the government or central bank is called?

Business
1 answer:
-Dominant- [34]3 years ago
8 0

Open Market Operation is the system in which the Central Bank supply money to the private banks.

Explanation:

The Reserve bank buy as well as sale the government securities so that it can control money supply. By selling and buying securities in a free market the amount of money is either expanded or contracted.

During inflation the price of the product rises , at that time the Reserve Bank purchase the securities so that money is not spend but in the other hand during deflation there is fall in the price as a result the Reserve Bank sale the securities so that purchase can be done.

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Answer:

A) True

B) False

Explanation:

If a country's inflation rate increases sharply, the inflation tax the loss in wealth suffered by holders of money as a result of inflation will definitely rise significantly.

Since money is neutral in the long run, inflation should not affect the real interest rate (over the long run) but only the nominal interest rate, which, in accordance with the Fisher effect should adjust one for one with the price level. Thus, wealth in savings accounts is not affected by changes in the inflation tax. However, holders of savings account are hurt by the increase in the inflation rate because they are taxed on their nominal interest income, so their real returns falls as a result of higher inflation.

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3 years ago
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3 years ago
he management of Green Energy Manufacturing is analyzing variable overhead variances for the fiscal period just ended. The flexi
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Answer:

See below

Explanation:

With regards to the above, Green's variable overhead spending variance is computed as

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Given that

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