ECONOMICS
MONETARY POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Because Russian currency is not trusted, real money plays a fairly small part in Russia’s economy today. Most business is conducted by barter or with IOUs. For example, workers rarely receive wages in the form of cash. A bicycle factory outside the city of Perm pays its workers in bicycles! To get cash, the workers have to sell their “paychecks.” More often than not, they simply trade the bicycles for the products they want.According to the passage, most business in Russia is conducted without currency because Russian currency is not
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divisible
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portable
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accepted
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durable
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Explanation:
Detailed explanation-1: -In the short-run, an increase in the money supply decreases the nominal interest rate, which increases investment and real output.
Detailed explanation-2: -M1 is a narrow measure of the money supply that includes currency, demand deposits, and other liquid deposits, including savings deposits. M1 does not include financial assets, such as bonds.
Detailed explanation-3: -In India, M3 is the most commonly used measure of money supply.
Detailed explanation-4: -The Founding of the Fed-FEDERAL RESERVE BANK of NEW YORK. After Alexander Hamilton spearheaded a movement advocating the creation of a central bank, the First Bank of the United States was established in 1791.
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