M
What is money?
Anything that is acceptable as a means of settling debts.
What is the role of the financial sector in the economy?
It attracts funds from lenders which is loans to firms, private individuals and the government.
What is the name of the governing bank of Jamaica?
The Bank of Jamaica
What is the definition of broad money?
M1 plus savings deposits and money market accounts.
Which of the following is part of the informal sector?
A. A Credit Union
B. An Insurance Company
C. A Building Society
D. A Money Lender
D. A Money Lender
What is an expansionary monetary policy? Give an example
Policies/Tactics/ Tools utilised by the central bank to increase the money supply.
What are the functions of money?
Store of Value, Unit of account, Standard of deffered payment, Medium of exchange
What are the features of money?
Portability, Uniformity, Divisibility, Acceptability, Legal tender, Durability, Relatively scarce
What is a contractionary monetary policy? Give an example.
Policies or Tactics or Tools utilised by the Central bank to reduce the money supply.
What are three motives for holding money?
Transactionary, Precautionary and Speculative
Explain the concept of barter, giving an example.
Barter is the direct exchange of goods and services for other goods and services. [give example]
Name two types of monetary policies.
Open market operations
What are two difficulties of barter?
Unequal value of exchange
Double coincidence of wants
Impossibility of savings
Explain how the use of money alleviates the problem of barter?
Store of value
Unit of account
What is the money supply?
The total stock of money in the economy at a particular time.
What is the 'informal sector' of the economy?
The informal sector is that part of the economy where economic activities are not under official control.
What is moonlighting?
When there is no official record of economic activities.
If money is not uniform, what problems could there be?
People might attach value to particular units of money and therefore hold on to them, or more attractive notes might command more goods and services than the less attractive notes of equal value.
Give some examples of jobs in the informal sector.
Househelp
Using examples, explain the workings of the informal sector.
Sales Representative, Mechanics, Taxi Operators.These individuals do not pay income taxes and/or there are no official records for them.
Discuss the role and functions of the financial sector.
It attracts funds from businesses and private individuals.
It affords these businesses and private individuals an opportunity to earn interest on their idle money balances.
It provides the government with a source of funds for investment purposes.
It provides the private sector with a source of funds for investment purposes.
It provides private individuals with a source of funds for investment or spending.
It allows the private sector and private individuals the opportnuity for part owbership of companies.
It provides compensation when mishaps occur, thus reducing risk in the economy.
What is the 'financial sector'?
The part of the economy involved in financial businesses.