What were main benefits from the activities of the goldsmith

Assignment Help Macroeconomics
Reference no: EM13202343

An early goldsmith banker earned a profit (sometimes a large profit) simply by writing notes to certify that a person had deposited a certain amoumt of gold in his vault. By writing more notes than the amount of gold held, the goldsmith could lend the notes and charge interest on them. Did the goldsmith bankers make money out of thin air in a form of legal theft? Should the goldsmith bankers have been regulated to ensure that the amount of gold in their vaults equaled the value of the notes they created? What were the main benefits fromt he activities of the goldsmith bankers?

Reference no: EM13202343

Questions Cloud

Estimate of the value of the new project : what is your estimate of the value of the new project and what is the IRR of the new project? Should the firm invest in this project or not?
Compute the optimal pricing scheme of the iphone : Suppose that technophiles are willing to pay $400 now for the latest iphone, but only $300 if they have to wait a year. Normal people are willing to pay $250 and their desire to purchase doesn't vary with time.
How fast is the height of the water increasing : An upright cylindrical tank with a radius 5 m is being filled with water at a rate of 4 m cubed/minute. How fast is the height of the water increasing?
Let e be a metric space s a subset of e : Let E be a metric space, S a subset of E, and let f:E-R be the function which takes the value 1 at each point of S and 0 at each point of the complement of S. Prove that the set of points of E at which f is not continuous is precisely the boundary..
What were main benefits from the activities of the goldsmith : By writing more notes than the amount of gold held, the goldsmith could lend the notes and charge interest on them. Did the goldsmith bankers make money out of thin air in a form of legal theft What were the main benefits fromt he activities of the..
How many trees should planted to maximize the yield : An apple orchard has an average yield of 32 bushels of apples/tree if tree density is 24 trees/acre. For each unit increase in tree density, the yield decreases by 4 bushels/tree. How many trees should be planted in order to maximize the yield?
How much withdrawals made and the balance left in account : Robertson Inc. wishes to set aside lump sum money to withdraw from and invest in automating parts of its business over the next 5 years. This money is expected to earn compound interest at the rate of 10% per year.
What dimensions will give the largest printed area : A poster is to have an area of 220 in2 with 1 inch margins at the bottom and sides and a 3 inch margin at the top. What dimensions will give the largest printed area? (Give your answers correct to one decimal place.)
What additional measures are available : R2 is misleading when used for time-series analysis. what additional measures are available?

Reviews

Write a Review

Macroeconomics Questions & Answers

  True or false questions on marginal revenue

Characterize each of the following statements as true or false, and explain your answer.

  Required an industry study on accounting services

Required an Industry study on Accounting Services in 500+ words with references and statistics.

  Write a formula for indifference curves

Raj's Utility bundles of X and Y is given by U(X,Y)=XY A. Fill in the table with Raj's utility for the corresponding bundles x=1 x=2 x=3 ,y=1 ,y=2 ,y=3 B. Wri..

  To calculate the avc or afc

The schedule below shows the level of output that can be produced using different levels of input. A unit of input costs $80 and the fixed costs of running your business are $50.

  Does the covered interest parity condition hold

Suppose that the interest rates in the U.S. and Germany are equal to 5%, that the forward (one year) value of the € is F$/€ = 1$/€ and that the spot exchange rate is E$/€ = 0.75$/€. Please answer the following questions by explaining all steps of ..

  What effect would omission have on the estimated sales trend

Suppose Cypress River estimates a linear trend without accounting for this seasonal variation. What effect would this omission have on the estimated sales trend?

  Identify also describe three trade restrictions

Identify also describe three trade restrictions. In your opinion, which method of restricting trade is the most efficient.

  When to expect such a shift away from checkable deposits

During the Great Depression, the US economy experienced many bank runs, to the point where people became unwilling to keep their money in banks, preferring to hold on to their cash.

  Find the maximum likelihood estimator

Suppose we have a random sample with 8 observations: x1=-2, x2=x3=-1, x4=x5=x6=0, x7=3, x8=8. Then density function of x is given by \(p(x)=0.5e^{-|x-\mu|}\) Find the maximum likelihood estimator for u.

  How would this event affect the money supply

Suppose the required reserve ratio were 8 percent of checkable deposits, and the simple deposit multiplier applied. Using negatives to represent a decrease, if the Fed bought $480 of Treasury securities from a bank, the result would be a $ increas..

  What is the long-run supply for the firm

A firm has a long-run cost function C1(y) = y^3 - 10y^2 + 30y. 1) Derive the firm's long-run average cost function 2) Derive the firm's long-run marginal cost function 3) Find the level of production with the lowest average cost 4) What is..

  Meaning of the long-run equilibrium is

Suppose that an increase in jewellery demand induces a a surge for in the demand for gold. Using diagrams from part a show what happens in the short run to the gold market and to each existing gold mine.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd