Would it help an economy if money expired and did not “earn interest” after a time?

1 Answer

Answer :

No. Everybody could go on the “Dole” and nobody would work . . . then what @RedDeerGuy1 ?

Related questions

Description : Are there any facilities in or around my area that still offer the earn-while-you-learn program. I live in Meriden Ct.I was cert. in 1998 however my cert expired in 2003 and I'd really like to get back into the nursing field.?

Last Answer : There does not seem to be any official training for a security gaurd position. Most of it is on the job training specific to the company.

Description : Enterpreneurial ability is a special kind of labour that - (1) is hired out to firms at high wages (2) organizes the process of production (3) produces new capital goods to earn interest (4) manages to avoid losses by continual innovation

Last Answer : (2) organizes the process of production Explanation: In economics, factors of production are the inputs to the production process. Factors of production' may also refer specifically to the 'primary factors', ... the other factors of production, land, labor, and capital, in order to make a profit.

Description : Enterpreneurial ability is a special kind of labour that (1) is hired out to firms at high wages (2) organizes the process of production (3) produces new capital goods to earn interest (4) manages to avoid losses by continual innovation

Last Answer : organizes the process of production

Description : Which among the following statements is not true when there is an increase in interest rate in an economy? (1) increase in saving (2) decrease in loan (3) increase in production cost (4) increase in capital return

Last Answer : (4) increase in capital return Explanation: Interest rate increase the cost of borrowing, which results in lesser investment activity and the purchase of consumer durables. In a low interest-rate ... . All of these factors raise output and employment as well as investment and consumer spending.

Description : Which from the following is not true when the interest rate in the economy goes up? (1) Saving increases (2) Lending decreases (3) Cost of production increases (4) Return on capital increases

Last Answer : (4) Return on capital increases Explanation: The interest rate is the cost of demanding or borrowing loanable funds. Alternatively, the interest rate is the rate of return from supplying or lending loanable funds. ... rate per unit of time, which is why it is called the rate of return on capital.

Description : Which among the following statements is not true when there is an increase in interest rate in an economy ? (1) increase in saving (2) decrease in loan (3) increase in production cost (4) increase in capital return

Last Answer : increase in capital return

Description : Which from the following is not true when the interest rate in the economy goes up ? (1) Saving increases (2) Lending decreases (3) Cost of production increases (4) Return on capital increases

Last Answer : Return on capital increases

Description : Mark the correct option a) After maturity , the senior citizen account will be extended further 3 year b) The account continued after maturity, the deposit shall earn interest at the rate applicable to the ... bank interest applicable d) There is no maximum time limit for PMI e) All the above

Last Answer : e) All the above

Description : Why does a cheap money low interest economy once again favor the rich and penalize the poor and middle class?

Last Answer : The current real estate market here definately favors the rich, as new homes are not as plentiful, so there are bidding wars for available homes, which knock out the poor and middle class potential buyers from the purchase.

Description : The process by which the central bank of a country controls the supply of money in the economy by exercising its control over interest rates in order to maintain price stability and achieve high economic ... A. Economic Policy B. Monetary Policy C. Fiscal Policy D. Credit Policy E. Budgetary Policy

Last Answer : B. Monetary Policy Explanation: Monetary Policy is the process by which monetary authority of a country, generally a central bank controls the supply of money in the economy by exercising its control over ... Bank of India (RBI). is so designed as to maintain the price stability in the economy.

Description : How much interest would I earn in one year on 100000 with a 1.75 percent interest rate?

Last Answer : You would earn 1750.

Description : When Valentina invested 6500 in a savings account with a yearly interest of 4 for 7 years how much simple interest did she earn?

Last Answer : 1,820-apex test answer

Description : If millions of people moved their money from banks to credit unions over the course of a year, what impact would that have on the economy?

Last Answer : answer:It would affect the profitability of big banks, but not necessarily have nay impact on consumers. If it was big enough, large banks would need to offer products to re-attract consumers, such as ... directly dependent on consumer demand. So there might be a bump up in car and house buying.

Description : Is there a relatively safe way to have a 10% return on invested money in this economy?

Last Answer : eden2eve: I suggest an investment in pine-trees. They take about 45 years to mature but the return is pretty close to 10% over the life of the investment and they are relatively safe. You can lose ... to develop a good relationship with a forester to show you the ropes, mark trees for thinning, etc.

Description : Aneconomy in which there are no flows of labour, goods or money to and from other nations is a/an - (1) slow economy (2) mixed economy (3) closed economy (4) open economy

Last Answer : (3) closed economy Explanation: An economy that does not interact with the economy of any other country is known as closed economy. A closed economy is selfsufficient, meaning no imports are brought in ... It is the opposite of an open economy, in which a country conducts trade with outside regions.

Description : Given the money wages, if the price level in an economy increases, then the real wages will - (1) increase (2) decrease (3) remain constant (4) become flexible

Last Answer : (2) decrease Explanation: If workers receive a higher nominal wage and the price level does not change, then the real purchasing power of their wages is higher and they are inclined to increase the quantity of labor supplied.

Description : Gross National Product is the money measure of - (1) all tangible goods produced in a country (2) final goods and services produced in the economy (3) services generated annually in the economy (4) all tangible goods available in the economy

Last Answer : (2) final goods and services produced in the economy Explanation: Gross national product (GNP) is the market value of all products and services produced in one year by labour and property supplied ... (including income of those located abroad), minus income of non-residents located in that country.

Description : The existence of a Parallel Economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Last Answer : (2) makes the monetary policies less effective Explanation: In India, Black money refers to funds earned on the black market, on which income and other taxes has not been paid. Black money ... a policy. So, in nutshell, the existence of parallel economy erodes the effectiveness of monetary policies.

Description : The existence of a parallel economy or Black Money - (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Last Answer : (2) makes the monetary policies less effective Explanation: The existence of black money is injurious not just for tax revenues. It distorts the systematic resource allocation process and upsets the ... . So the existence of black money erodes the very rationale of growth behind monetary policies.

Description : The relationship between the value of money and the price level in an economy is - (1) Direct (2) Inverse (3) Proportional (4) Stable

Last Answer : (2) Inverse Explanation: The basic causal relationship between the price level and the value of money is that as the price level goes up, the value of money goes down. The "value of money" refers to ... price level" refers to the average of all of the prices of goods and services in a given economy.

Description : Money is said to be neutral if (a) it affects the real variables of the economy. (b) it does not affect the real variables of the economy. (c) it affects only the production. (d) it affects both production & employment.

Last Answer : (b) it does not affect the real variables of the economy.

Description : The existence of a Parallel Economy or Black Money (1) makes the economy more competitive (2) makes the monetary policies less effective (3) ensures a better distribution of income and wealth (4) ensures increasing productive investment

Last Answer : makes the monetary policies less effective

Description : An economy in which there are no flows of labour, goods or money to and from other nations is a/an (1) slow economy (2) mixed economy (3) closed economy (4) open economy

Last Answer : closed economy

Description : Gross National Product is the money measure of (1) all tangible goods produced in a country (2) final goods and services produced in the economy (3) services generated annually in the economy (4) all tangible goods available in the economy

Last Answer :  final goods and services produced in the economy

Description : The relationship between the value of money and the price level in an economy is (1) Direct (2) Inverse (3) Proportional (4) Stable

Last Answer : Inverse

Description : Given the money wages, if the price level in an economy increases, then the real wages will (1) increase (2) decrease (3) remain constant (4) become flexible

Last Answer : decrease

Description : Why do we allow the Federal Reserve loan money to commercial banks at almost 0% interest, who then loan the tax payers this money at a much higher interest rate?

Last Answer : If you want to learn more about the Federal Reserve system and how it works, start with Wikipedia and then, for fun, consider asking targeted questions of the conspiracy theorists here on Fluther. ... takes something of yours. Interest happens when you choose to pay for the opportunity to borrow.

Description : A low interest policy is also known as – (1) cheap money policy (2) income generating (3) dear money policy (4) investment policy

Last Answer : (1) cheap money policy Explanation: Cheap money policy involves loan or credit with a low interest rate, or the setting of low interest rates by the central bank of the country. Cheap money is ... , but bad for investors. Cheap money policy was one of the primary catalysts of the 2008 recession.

Description : Cheap Money means - (1) Low Rate of Interest (2) Low level of Savings (3) Low level Income (4) Excess of Black Money

Last Answer : (1) Low Rate of Interest Explanation: Cheap Money' is a loan or credit with a low interest rate, or the setting of low interest rates by a central bank like the Federal Reserve. Cheap money ... see the same low interest rates on investments like savings accounts, money market funds, CDs and bonds.

Description : Bank rate is the rate of interest: (1) At which public borrows money from Commercial Banks (2) At which public borrows money from R.B.I. (3) At which Commercial Banks borrow money from R.B.I. (4) At which Commercial Banks borrow money from the public

Last Answer : (3) At which Commercial Banks borrow money from R.B.I. Explanation: Bank Rate is the interest rate at which a nation's central bank lends money to domestic banks. Often these loans are ... activity. Regulation of the economy through management of the money supply is referred to as monetary policy.

Description : Funs which flow into a country to take advantage of favorable rates of interest in that country is called - (1) Cold Money (2) Black Money (3) Hot Money (4) White Money

Last Answer : (3) Hot Money Explanation: Hot money is a term that is most commonly used in financial markets to refer to the flow of funds (or capital) from one country to another in order to earn a ... hot money" because they can move very quickly in and out of markets, potentially leading to market instability.

Description : Cheap money means - (1) Low rates of interest (2) Low level of saving (3) Low level of income (4) Low level of standard of livtrig

Last Answer : (1) Low rates of interest Explanation: Cheap money is a loan or credit with a low interest rate, or the setting of low interest rates by a central bank like the Federal Reserve. ... funds, CDs and bonds. Cheap money can have detrimental economic consequences as borrowers take on excessive leverage.

Description : "Dear Money" means - (1) low rate of interest (2) high rate of interest (3) depression (4) inflation

Last Answer : (2) high rate of interest Explanation: Dear Money, also known as tight money, is money which has to be borrowed at a high interest rate, and so restricts expenditure by companies. This situation ... supply and demand. Businesses may have a tough time raising capital during a period of dear money.

Description : Bank rate is the rate of interest - (1) at which public borrows money from Commercial Bank (2) at which public borrows money from RBI (3) at which Commercial Banks borrow money from RBI (4) at which Commercial Banks borrow money from public

Last Answer : (3) at which Commercial Banks borrow money from RBI Explanation: Bank Rate is the interest rate at which a nation’s central bank lends money to domestic banks. Managing the bank rate is a preferred method by which central banks can regulate the level of economic activity.

Description : 10. An increase in the money supply will cause interest rates to a. rise b. fall c. remain unchanged

Last Answer : b. fall

Description : Under the liquidity trap conditions, an increase in money supply will (a) increase investment (b) increase level of employment (c) reduce the rate of interest (d) have no effect on interest rate, investment and employment

Last Answer : (c) reduce the rate of interest

Description : According to monetary approach of Balance of Payments, the demand for money is a stable function of (a) income, prices and rate of interest (b) income and prices (c) prices and rate of interest (d) income, prices and foreign exchange reserves

Last Answer : income, prices and rate of interest

Description : Which of the following is an example of fiscal policy (a) Change in interest rate (b) Change in tax rate © Controlling money supply (d) Manipulating bank rate

Last Answer : (b) Change in tax rate

Description : Funds which flow into a country to take advantage of favourable rates of interest in that country is called (1) Cold Money (2)Black Money (3) Hot Money (4) White Money

Last Answer : Hot Money

Description : A low interest policy is also known as : (1) cheap money policy (2) income generating (3) dear money policy (4) investment policy 

Last Answer : cheap money policy

Description : The opportunity cost of a factor of production is - (1) what it is earning in its present use. (2) what it can earn in the long period. (3) what has to be paid to retain it in its present use. (4) what it can earn in some other use.

Last Answer : (4) what it can earn in some other use. Explanation: The opportunity cost of a choice is the value of the best alternative forgone, in a situation in which a choice needs to be made between ... given limited resources. It is equivalent to what a factor could earn for the firm in alter-native uses.

Description : Any factor of production can earn economic-rent, when its supply will be - (1) Perfectly elastic (2) Perfectly inelastic (3) Elastic in nature (4) All of the above

Last Answer : (2) Perfectly inelastic Explanation: Economic rent is the revenue that can be earned from the land or other natural resource for which there is a fixed supply - as economists like to say, the supply ... inelastic, the amount of its supply does not depend on any income that the resource can produce.

Description : Minimum Support Price is announced by the government to provide : (a) incentives to farmers for raising production (b) incentives to traders to earn maximum profit from farmers (c) incentives to moneylenders to lend maximum to farmers (d) none of the above

Last Answer : (a) incentives to farmers for raising production

Description : Which of the following is true about the way by which SDG&E has been regulated by the PUC? a. SDG&E has been allowed to earn very high economic profits b. The profits of SDG&E are calculated as ... the demand for electricity would fall, the price of electricity would also fall d. All of the above

Last Answer : b. The profits of SDG&E are calculated as a percent of the value of the capital goods

Description : Given competitive conditions, a firm in the long run earn (a) Quasi-rent (b) Pure-rent (c) Normal profit (d) Economic profit

Last Answer : (c) Normal profit

Description : Any factor of production can earn economic-rent, when its supply will be (1) Perfectly elastic (2) Perfectly inelastic (3) Elastic in nature (4) All of the above

Last Answer : Perfectly inelastic

Description : The opportunity cost of a factor of production is (1) what it is earning in its present use. (2) what it can earn in the long period. (3) what has to be paid to retain it in its present use. (4) what it can earn in some other use.

Last Answer : what it can earn in some other use.

Description : how long after my green card expired i have to wait to get it back ?

Last Answer : You don't wait for your green card to expire. You need to get it renewed before so you don't get in trouble with Immigration. If you expire they can deport you back to your hometown.

Description : Does pizza hut accept expired coupons, and if so, how long after the expiration date will pizza hut accept the expired coupon?

Last Answer : No, there isn't any company that accept expired coupons. Expired means cancelled, no longer any good and it is not accepted anywhere for use. The date let's you know if it's valid or not.

Description : If the economy is in such bad shape that the president is signing bail-out bills, why are charge card companies allowed to increase their interest rate?

Last Answer : They sneaked the increases in before the legislation took hold.