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Discussion Question 

Money Aggregate or money supply plays a crucial role in any economy, which not only counts the money supply at specific time period but also useful in taking different economic decisions. Definitions of different money aggregate are some how loosely defined but all the economists differentiate and classify M1, M2 & M3 on the single accepted base.

 

 Required

Sr.

Question

Answer (Write  keywords only)

a)

What is the main characteristic that distinguish the different money aggregate definitions?

 

b)

Which money aggregate definition is mostly used in economic decision around the world?

 

c)

Justify answer given against part-b.

(provide only one reason)

 

 

 

 

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Replies to This Discussion

plz plz someone uplaod the solution

1.What is the main characteristic that distinguishes the different money aggregate definitions?

Solution:

The main characteristic that distinguishes the different money aggregate definitions is the Liquidity.

 

2.Which money aggregate definition is mostly used in economic decision around the world?

Solution:

M2 is used in economic decisions.

 

3. Justify answer given against part-b.

(provide only one reason)

 Solution:

Economists use M2 when looking to quantify the amount of money in circulation and trying to explain different economic monetary conditions. M2 is a key economic indicator used to forecast inflation .

Please Discuss here about this GDB.Thanks

1.What is the main characteristic that distinguishes the different money aggregate definitions?
Solution:
The main characteristic that distinguishes the different money aggregate definitions is the Liquidity.

2.Which money aggregate definition is mostly used in economic decision around the world?
Solution:
M2 is used in economic decisions.

3. Justify answer given against part-b.
(provide only one reason)
Solution:
Economists use M2 when looking to quantify the amount of money in circulation and trying to explain different economic monetary conditions. M2 is a key economic indicator used to forecast inflation .

MONEY AND BANKING

Money Aggregate or money supply plays a crucial role in any economy, which not only counts the money supply at specific time period but also useful in taking different economic decisions. Definitions of different money aggregate are some how loosely defined but all the economists differentiate and classify M1, M2 & M3 on the single accepted base.

 

 Required

Sr.

Question

Answer (Write  keywords only)

a)

What is the main characteristic that distinguish the different money aggregate definitions?

 Degree of liquidity

b)

Which money aggregate definition is mostly used in economic decision around the world?

 M2

c)

Justify answer given against part-b.

(provide only one reason)

 

 

 ????????

MGT411

GDB SOLUTION

 

Question

Money Aggregate or money supply plays a crucial role in any  economy, which not only counts the money supply at specific time period but also useful in taking different economic  decisions. Definitions of different money aggregate are some how  loosely defined but all the economists differentiate and classify  M1, M2 & M3 on the single accepted base.

 

Give answer in keywords only:

Q#1.What is the main characteristic that distinguishes the  different money aggregate definitions?

 

Solution:

The main characteristic that distinguishes the different money  aggregate definitions is Liquidity.

2. Which money aggregate definition is mostly used in economic  decision around the world?

Solution:

M2 is used in economic decisions.

3. Justify answer given against part-b.  

(provide only one reason)

Solution:

 Economists use M2 when they want to quantify the amount of  money in circulation and try to explain different economic  monetary conditions. M2 is a key economic indicator used to  forecast inflation.

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