Question

*60% 22:16 + Homework.pdf @ : Guidelines: Your essays for the three questions must not exceed 1000 words (an average of 300 words per question). QUESTIONS 1. What is the most used form of money today? This evolution has made at the expense of what form of money and will be made in the future for the benefit of what other form of money. Justify your answer. 2. Text comment "Traditionally, we recognize three functions of money: a calculation function economic, an intermediary function of exchanges and a reserve function of value. A perfect currency would fulfill these three functions, however the function of instrument payment is essential when defining the currency. In some cases, the unit of account can be dissociated from the currency of payment: it was the Middle Ages this is often the case with international trade; in other cases, a currency can very poorly fulfill its value store function, for example, by period of inflation, and above all a multitude of liquid assets can filla function of store of value without being money, that is to say instruments of payment Comment on this quote considering the following questions. A. Is there only one way to define currency? B. How can we consider money as an asset of the agent economic ? 3. Since the end of 2019, the world has been waging a war against COVOD 191 According to you what role can and could monetary policy play in countering the effects of this Pandemic

here is the homework with questions in english. It is due in one day, can I get this by today please?

Answer 1

Q1 : Answer.

Money is any object that is generally accepted as payment for goods and services and repayment of debts in a given country . The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally, a standard of deferred payment.We all know that money is something that can act as the medium of exchange in transactions

In the modern monetary systems, there are three forms of money in actual use: (i) Metallic Money, (ii) Paper Money, and (iii) Credit Money.The first two kinds of money are in the form of currency money and the last one is credit or bank money..

Metallic Money:

Metallic money refers to coins made out of various metals like gold, silver, bronze, nickel, etc. A coin is a piece of metal of a given size, shape, weight and fineness whose value is certified by the nation.

Paper Money:

Paper money consists of currency notes issued by the State Treasury or the Central Bank of the country.

In modern era, the use of paper money is widespread owing to its following advantages:

1. Paper money is economical. Obviously, paper is much cheaper than any metal.

2. Paper money economises the use of precious and scarce metals by serving as representative money.

3. It is very convenient to carry paper money from place to place.

4. It is easier to count paper notes than metallic coins.

5. Supply of paper money is easily adjustable as per the need of the economy. Thus, paper money is of\ great monetary and fiscal advantages to the government.

Credit Money:

In modern economic societies, with the development of banking activity, along with paper money, another form of convertible money has developed in the form of credit money or bank money.Bank demand deposits, withdrawal by issuing cheques, have started functioning as money, and cheques are now conventionally accepted as a mode of payment by the business community in general.

Bank money today constitutes a major part of money supply in advanced countries. In many countries such as America, it amounts to nearly 90 per cent of the total money supply. In poor countries, the proportion of currency money widely exceeds that of bank money.Indeed, in a modern economy, currency money and bank money together constitute the total stock of money or money supply. Currency money is a legal tender and has general acceptability, whereas bank deposits are conventional money and lack general acceptability.

Q2: Answer (a).

Currency is a medium of exchange for goods and services. In short, it's money, in the form of paper or coins, usually issued by a government and generally accepted at its face value as a method of payment.Currency is the primary medium of exchange in the modern world, having long ago replaced bartering as a means of trading goods and services.

There are a variety of opinions on what constitutes a good currency.

1. Generally Accepted - Many people must accept the money as a settlement of debt or as a discharge of

obligation.
2. Durable - Its quality/value does not deteriorate over time, which is why we do not tend to use food

products as money.
3. Divisible - If you divide the money in half, each half should be worth 50% of the whole. This is why we

tend not to use diamonds or artwork as money.
4. Stable/Consistent - The value does not fluctuate substantially with time.
5. Transportable - It is easy to move from one place to another.
6. Scarce - It is difficult to acquire.
7. Easily recognizable - It needs to be obvious what it is, mostly for the purposes of #1.
8. Difficult to Counterfeit -

9. Elasticity - It must be able to expand or contract as needed in the economy.
10. Economical - The cost to produce it must be less than its value.
11. Inherently Valuable - The money should have a use besides its use as money that gives it intrinsic value.
12. Long history of acceptance -
13. Supervised - The currency is tracked by a central authority to avoid economic catastrophes.

Q2 Answer (b):

In economics money is defined as an asset (a store of value) which functions as a generally accepted medium of exchange.money kept as a store of value for later use.An asset is anything of monetary value owned by a person or business..Simply stated, assets represent value of ownership that can be converted into cash (although cash itself is also considered an asset). The balance sheet of a firm records the monetary value of the assets owned by that firm.

Q3 : Answer;

Our current efforts to fight Covid-19 are the equivalent of fending off a surprise attack. Next we have to wage a sustained war. That means it’s essential to clearly envision the problems we’ll face over the next 12 to 18 months and mobilize to respond right away.The global pandemic created by the novel coronavirus has spawned multiple debates, many of them on how the Indian government should respond to the economic fallout. Industrialists and economists agree on one point - as the pandemic is likely to dry up cash in the system, the government must focus on keeping the money streams flowing.

Monetary policy is the macroeconomic policy laid down by the central bank. It involves management of money supply and interest rate and is the demand side economic policy used by the government of a country to achieve macroeconomic objectives like inflation, consumption, growth and liquidity.the quantity of money in order to meet the requirements of different sectors of the economy and to increase the pace of economic growth.The monetary policy through open market operations, bank rate policy, reserve system, credit control policy, moral persuasion and through many other instruments. Using any of these instruments will lead to changes in the interest rate, or the money supply in the economy. Monetary policy can be expansionary and contractionary in nature. Increasing money supply and reducing interest rates indicate an expansionary policy. monetary policy front.

The federal government should immediately increase the federal share of Medicaid spending. A health crisis will increase demands on Medicaid as more people need testing, are sick, or seek medical care. By picking up a larger share of the costs of Medicaid, the federal government can make sure that budget decisions do not constrain the health response by the states and ensure that increased Medicaid costs do not force states to cut spending in other areas (e.g., education or public safety) in ways that could contribute to an economic downturn. Congress could add triggers that depend on diagnosed cases of COVID-19 at the state level to make an additional increase in the federal share of Medicaid in places that are particularly hard hit.While the Federal Reserve has lowered borrowing costs broadly, it is not able to target lending to specific firms. A program through either the U.S. Department of the Treasury or the Small Business Administration could allow firms to borrow to smooth over temporary disruptions caused by broken supply chains (for example, if parts from China cannot be shipped). An administratively more challenging policy would be to have federal funding for sick days available to all firms so they can encourage workers—even those who do not currently have access to paid sick days—to take appropriate time off if they are ill. The Federal Reserve can also provide guidance to banks to lengthen loan terms and raise credit limits to take into account temporary challenges based on problems associated with the spread of COVID-19.