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Week 3 live chat Questions What is funds, and what are 3 functions of bullion? According to the capitalist economic theory, money is notwithstanding medium of exchange, unit of account and store of value. This definition of money does not take into account the role of money as means of stimulation of economic activities and equivalent of labor and exertion. specie as means of stimulation of economic activities: Money as an equivalent of labor and production: Money as medium of exchange: What constitutes the M1 money supply. The M2 money supply? The scathe M1, M2, M3 refer to the monetary aggregates. M1: Technically defined this is the sum of: the attendee that is held outside banks, travelers checks, checking accounts (but not demand deposits), minus the summate of money in the federal official Reserve float. M2: The sum of: M1, savings deposits (this would admit money market accounts from which no checks can be written), sharp denomination time deposits (where small is less than $100,000), retirement accounts. What is the Federal Reserve System? A U.S. banking musical arrangement that consists of 12 federal reserve banks, with each one serving member banks in its own district.

This system, supervised by the Federal Reserve Board, has commodious regulatory powers over the money supply and the credit structure. What is meant by Fractional Reserve Banking? Fractional Reserve Banking was a banking system in which a fraction of the sum of (a) a cloak-and-dagger banks invested capital and (b) the deposits of gold by the unavowed banks customers at the bank must be kept on hand at the bank, in gold, to (a) catch routine expenditures of the bank and (b) return deposits to the depositors when the depositors indigence those gold deposits back.[1] In that sense, when a private bank loaned paper money to a borrower, it guaranteed, falsely, that that paper money was backed by whatever amount of gold was written or printed on the money. What is the Deposit Expansion... If you want to get a full essay, order it on our website: Orderessay

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