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What does 'fiat money' refer to?

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Important Questions on Money and Banking

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

Why is the money supply called 'high powered' when issued by the central bank?

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

What is the 'cash reserve ratio' (CRR)?

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

What is the average product of an input?

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

What is the role of the central bank in money supply?

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

What is the primary function of money?

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

How do commercial banks create money?

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

For the production function \(Q = 2L^2K^2\), how would you determine the maximum possible output with given units of labour and capital? What happens if one input is zero?

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

What is the law of variable proportions?

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

Given the production function \(Q = 5L^{rac{1}{2}}K^{rac{1}{2}}\), how would you calculate the maximum possible output with specific units of labour and capital?

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

What is the marginal product of an input?

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

What is meant by 'high-powered money'?

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

What is a major drawback of the barter system?

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

What is the total product of an input?

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

How can you calculate the total and average product schedules of labour from the marginal product schedule, given that the total product is zero at zero level of employment?

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

Explain the concept of a production function.

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

Given a firm's short-run marginal cost schedule and total fixed cost, how can you find the TVC, TC, AVC, and SAC schedules?

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

Explain the concepts of the short run and the long run.

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Economics>Macroeconomics>Money and Banking>Demand and Supply of Money

Explain the relationship between the marginal products and the total product of an input.