demand for money arises out of the need to hold money as a medium of exchange. This demand for money is a function of A. precautionary; interest rates B. transactions; national income C. speculative; interest rates D. Precautionary; national income
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- 4. National savings (S) is the sum of public and private savings and is equal to thefollowing equation:a. (Y - T - C) - (T - G)b. Y - C - Gc. (Y - T - C) - (T + G)d. Y - T - CThe ________ demand for money arises out of the need to hold money as a medium of exchange.This demand for money is a function of ________. (4 marks)A Precautionary; interest ratesB Transactions; national incomeC Speculative; interest ratesD Precautionary; national incomeThe amount of money paid for the use of borrowed capital or from the money that has been loaned ОА. Сарpital ОВ. Ехpenses O C. Interest O D. MARR
- 4. Eleanor makes year-end deposits of 500,000 the first year, 550,000 the second year, 605,000 thethird year, and so on increasing the next year’s deposit by 10% of the deposit in the preceding yearuntil the end of the 10th year. Ronald makes equal year-end deposits of 720,00,000 each year for 10years. A.) Is the gradient of Eleanor’s payments increasing or decreasing?B.) If interest on both funds is 12% compounded annually, who will be able to save more atthe end of 10 years.. The rate of ______ is the ______ paid for using someone else’s ______, which is a _____ to consumers for earlier availability of durable goods such as cars, and a ______ to suppliers for capital investments nominal interest; money; cost; price; cost nominal interest; price; money; cost; cost real interest; price; money; cost; cost real interest; money; cost; price; cost14. The costs expressing economic relations on the basis of which there is a process of use of the centralized Fund of money of the state in various directions are: a) budget expenditure; b) budget revenues; c) salary; d) depreciation; e) rent О33 и И
- A Suppose the difference between the transactions velocity and the income velocity of circulation of money in an economy is 5 and the money value of total transactions is 6 times the money value of aggregate income. If the quantity of money in circulation is 1000 currency units, then the money value of aggregate income in currency units is (a) 1000 (b) 1200 (c) 1500 (d) 18006. Express the relationship between money demands for precautionary and Real GDP. [ Nour answerSome friends of yours have just had a child. Thinking ahead, and realizing the power of compound interest, they are considering investing for their child's college education, which will begin in 18 years. Assume that the cost of a college education today is $125,000. Also assume there is no inflation and no tax on interest income used to pay college tuition and expenses. Instructions: Enter your responses rounded to the nearest dollar. Do not round intermediate calculations. a. If the interest rate is 5 percent, how much money will your friends need to put into their savings account today to have $125,000 in 18 years? They would need to put $ 36982.9 into their savings account today. b. What if the interest rate were 7 percent? They would need to put $ into their savings account today. c. The chance that the price of a college education will be the same 18 years from now as it is today seems remote. Assuming that the price will rise 3 percent per year, and that today's interest rate is…
- 38. Which is not a Exempt Interest Income a. Interest income from long-term deposit or investment in the form of savings, common or individual trusty funds, deposit substitute, and other investments. b. Interest income derived from loans, bonds, and other domestic securities and deposits in banks in the Philippines by foreign governments c. Interest income from Foreign currency deposit units deposits of non-resident individuals and corporations. O d. Interest Income from deposits in Bank5. Dena won $1,000 at a bingo game. She deposits her $1,000 winning into a money market fund so that she can use the money next year to pay her tuition. This is an example of money serving as a (an): unit of account. medium of exchange. store of value. investment good.1. Clarify the relationship between "production and cost", based on your knowledge. 2. Explain all these, write only what you understand: a) Importance of Distribution, b) Concept of national income, c) Theory of employment or d) Concepts of supply and demand. 3. What do you understand about national income? 4.How would you like to summarize about approacheso for the monetary analysis?
