E Cash Usage and Negative Interest Rate Discussion Answer all the questions. Indicate whether the following statements are TRUE or FALSE.Question – 1 Are w

E Cash Usage and Negative Interest Rate Discussion Answer all the questions. Indicate whether the following statements are TRUE or
FALSE.Question – 1
Are we headed for a cashless society? Elaborate this statement with providing
comprehensive analysis on e-cash and its usage.
Question – 2
In recent days, USA financial institutions considering the option of negative interest
rate. Explain its possibility and working with past examples. Monetary Economics
Attempt both questions. Both questions carry equal marks.
Question – 1
Are we headed for a cashless society? Elaborate this statement with providing
comprehensive analysis on e-cash and its usage.
Question – 2
In recent days, USA financial institutions considering the option of negative interest
rate. Explain its possibility and working with past examples.
Answer all the questions. Indicate whether the following statements are TRUE or
FALSE.
1- The cash-less economy is not the money-less economy.
2- Bank reserves are equal to the deposits of the commercial banks with the central
bank (these are called “federal funds” in the USA) plus “vault and till cash” (that
is,
currency in the commercial banks).
3- Nominal money supply can accurately be calculated.
4- In policy analysis, the inflation adjusted real interest rate is used to get the
approximation of the real rate.
5- The major problem of barter is the need for a double coincidence of wants.
6- The most important role of money is to serve as a store of value.
7- Only items defined by the government as legal tender count as M2.
8- A decrease in the required reserve ratio will normally increase the money supply.
9- The rate of interest is the opportunity cost of holding money.
10- The Federal Reserve will act as a “lender of last resort” if a bank runs into
liquidity problems
.

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