« previous next »

Author Question: Describe how financial innovation has affected the demand for money. What will be an ideal ... (Read 50 times)

codyclark

  • Hero Member
  • *****
  • Posts: 538
on: Jun 29, 2018
Describe how financial innovation has affected the demand for money.
 
  What will be an ideal response?

Question 2

In an unregulated market for healthcare, the equilibrium quantity is that at which ________ and the efficient quantity is that at which ________.
 
  A) D = S; MB = MSC
  B) D = S; MSB = MSC
  C) D = MSC; MB = MSC
  D) MSB = S; MB = S


tandmlomax84

  • Sr. Member
  • ****
  • Posts: 323
Reply #1 on: Jun 29, 2018
Answer to Question 1

Financial innovation is the development by depository institutions of new financial products and changing technology within the banking industry. Examples include daily interest checking deposits, automatic transfers of money between deposits, ATM's and credit cards. In general these innovations have allowed the public to be more flexible in their choices between cash and less liquid assets as banks have delivered greater liquidity without forgoing interest earned. The result has been a large decrease in the demand for M1 and a smaller decrease in the demand for M2.

Answer to Question 2

B


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

About 3% of all pregnant women will give birth to twins, which is an increase in rate of nearly 60% since the early 1980s.

Did you know?

Always store hazardous household chemicals in their original containers out of reach of children. These include bleach, paint, strippers and products containing turpentine, garden chemicals, oven cleaners, fondue fuels, nail polish, and nail polish remover.

Did you know?

Approximately 70% of expectant mothers report experiencing some symptoms of morning sickness during the first trimester of pregnancy.

Did you know?

Certain rare plants containing cyanide include apricot pits and a type of potato called cassava. Fortunately, only chronic or massive ingestion of any of these plants can lead to serious poisoning.

Did you know?

Complications of influenza include: bacterial pneumonia, ear and sinus infections, dehydration, and worsening of chronic conditions such as asthma, congestive heart failure, or diabetes.

The following terms describe types of body movement that occur at the diarthrotic joints The following terms describe types of body movement that occur at the diarthrotic joints
Masaccio, The Tribute Money. Masaccio, The Tribute Money.
Classic Supply - Demand Curve Classic Supply - Demand Curve
Moving currents are affected by Earth’s rotation Moving currents are affected by Earth’s rotation
The population of Asia increases rapidly, the demand for food and water is also growing The population of Asia increases rapidly, the demand for food and water is also growing
A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ... A debt payment of $7500 is due in 24 months. If money is worth 7.2% p.a. compounded quarterly, ...
Video: Bone tissue types - compact and spongy

For a complete list of videos, visit our video library