Tutorial monetary policy

Givethreeexamples theexchangeofgoodsforothergoodsis

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Unformatted text preview: role in the money supply of a country. Discuss. Definition of money supply M3 The process of credit creation and the ratio Money supply = 1/cash ratio x original deposit If money does not exists, what problems will people face in carrying out transactions or exchange. (Give three examples) The exchange of goods for other goods is called barter trade. The following are some problems which may be encountered in barter trade: Problem of double co­incidence For example, if Mary wants to buy a cow and has some chicken to sell, she must fin...
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This note was uploaded on 08/17/2013 for the course ECON 101 taught by Professor Idson during the Winter '08 term at BU.

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