b. C. What is the value of the monetary base? (Give $ value.) Suppose the interest rate on government bonds is 2.7%. What is the government' revenue? (Give a $ value; ignore the costs of printing the currency, etc., and assu bank does not pay interest on reserves.)
b. C. What is the value of the monetary base? (Give $ value.) Suppose the interest rate on government bonds is 2.7%. What is the government' revenue? (Give a $ value; ignore the costs of printing the currency, etc., and assu bank does not pay interest on reserves.)
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![Suppose that a country computes its monetary aggregates in the same way as the Federal Reserve. The
relevant table on the central bank website reports the following values.
a.
b.
C.
Currency
Treasury securities
Savings deposits
Other checkable deposits
Large time deposits
Bank reserves
Retail money market mutual funds
Demand deposits
Small time deposits
$751
$1,041
$642
$241
$802
$167
$105
$524
$361
What is the value of M1? (Give $ value.)
What is the value of the monetary base? (Give $ value.)
Suppose the interest rate on government bonds is 2.7%. What is the government's seigniorage
revenue? (Give a $ value; ignore the costs of printing the currency, etc., and assume the central
bank does not pay interest on reserves.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2b695ea7-3134-45bc-b351-4430044d0f2a%2F4646898e-d2f0-4f2b-b300-ff9d320a8052%2Feuf69mr_processed.png&w=3840&q=75)
Transcribed Image Text:Suppose that a country computes its monetary aggregates in the same way as the Federal Reserve. The
relevant table on the central bank website reports the following values.
a.
b.
C.
Currency
Treasury securities
Savings deposits
Other checkable deposits
Large time deposits
Bank reserves
Retail money market mutual funds
Demand deposits
Small time deposits
$751
$1,041
$642
$241
$802
$167
$105
$524
$361
What is the value of M1? (Give $ value.)
What is the value of the monetary base? (Give $ value.)
Suppose the interest rate on government bonds is 2.7%. What is the government's seigniorage
revenue? (Give a $ value; ignore the costs of printing the currency, etc., and assume the central
bank does not pay interest on reserves.)
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