(Solved):   12 12 A number of countries are withdrawing high value banknotes. For instance, Singapore ...

 

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12 A number of countries are withdrawing high value banknotes. For instance, Singapore plans to stop issuing its $10000 note. High value notes were originally intended to act as a convenient store of value. Central banks are concerned some notes are now being used illegally. The Singapore Police Force and the Monetary Authority of Singapore (its central bank) were trying to recruit more workers in 2017. It was expected that the central bank would raise the rate of interest in 2018. (a) State two functions of money, other than a store of value. [2] (b) Explain two advantages banknotes have as a form of money. [4] (c) Analyse the influences on the mobility of workers. [6] (d) Discuss whether or not a central bank should raise the rate of interest. [8]