Calculate the value of currency with public if M1 is $1,55,612 , demand deposits is 68,000 and other deposit with Central Bank is 3612

Q: Is demand deposit and current deposit at bank same

A: The bank is the financial institution which deals primarily in the accepting and mobilizing the…

Q: Coins and bank notes in circulation (Rm) Year Demand deposits Short-term and medium-term deposits…

A: Measures of Money Supply : M1 for 2007 = Currency in circulation + Demand Deposits + Other Deposits(…

Q: Calculate net time deposit with banks if M3 is $22,000 and M1 is $6500

A: The data presented in the question above:- M3 = $22,000 million M1 = $6500 million Net time deposit…

Q: Find the sum money of M4 when the M3 is $700 and the Total deposit with post saving banks are $800

A: Generally in the given question Value of M3= $700 And total deposit with post saving banks are =…

Q: The Value of M1 is $16,000 and M2 is $20,000 Find the value of savings deposit with post office…

A: According to the above given question, the values given are:- M1 = $16,000 M2 = $20,000  We have to…

Q: If the desired reserve ratio in a country is equal to 5% and the cash drain ratio is 30%, a deposit…

A: Required reserves is the portion of the deposits that a bank is supposed to keep with themselves and…

Q: If a depositor withdraws currency from abank, that bank's total reserves increase   True False

A: If a depositor withdraws currency from a bank, that bank's total reserves increase   True False

Q: Calculate the value of M1 if currency with public is $84000 million , demand deposits is $68000…

A: The given information is as follows:- Currency with public = $84,000 million Demand deposit =…

Q: Which of the following is not included in M1? coins credit cards paper money O checking deposits

A: M1 money supply is the narrow form of money that only include cash and liquidity Monetary…

Q: If M3 is $200 million and M1 is $88 million Find the value of net time deposit with banks

A: The information being given to us is as follows:- M3 = $200 million M1 = $88 million We need to…

Q: Calculate M1 if M3 is $20,000 and net time deposit with banks is $17,000

A: The data presented in the question above is:- M3 = $20,000 Net time deposit with banks = $17,000 We…

Q: Assume that the currency-deposit ratio is 0.5, the required reserve ratio is 0.1, and the excess…

A: We have been given that:- Currency deposit ratio(CD)=0.5 Required reserve ratio(RR)=0.1 Excess…

Q: Which of the following is not counted in​ M2?   A. U.S. Savings account balances   B. U.S. Checking…

A: M2 = M1 + saving deposits with banks M1 = Coins and currency in circulation +checking account…

Q: The currency with public is $330 million , demand deposits is $70 million and other deposit with…

A: The given information is as follows:- Currency with public = $330 million Demand deposit = $70…

Q: Which of the following is considered least liquid? O a) currency bills O b) Checking account O c)…

A: In economics, liquidity is defined as the ability of an asset to be turned into cash. An asset is…

Q: Calculate net time deposit with banks if M3 is $25,000 and M1 is $11,000

A: Money Supply: - In an economy, the total value of money in circulation at a point in time is known…

Q: The value of M3 is $17,000 and the value of net time deposit with banks is $9,000 Find the value of…

A: According to the above given question, the values given are:- M3 = $17,000 Net time deposit with…

Q: Calculate the value of M2 given that the M1 measure of money supply is $85,000 and saving deposit…

A: The data presented in the question is:- M1 measure of money supply = $85,000 Savings deposit with…

Q: Calculate M1 if:- Currency with public = $23,000 Demand deposit = $11,000 Other deposit with RBI…

A: The data presented in the question above:- Currency with public = $23,000   Demand deposit = $11,000…

Q: total deposit with post office is $31,000 and M4 is $19,000 Calculate M3

A: M1 = Currency + Demand Deposits M2 = M1 + Savings deposits with Post Office savings banks M3 = M1 +…

Q: Assuming initially that the required reserve ratio = 15%, the currency-deposit ratio = 40%, and the…

A:

Q: The value of M2 is $6400 and the value of M1 is $3300 Calculate the value of savings deposit with…

A: The given information is as follows:- M2 components of money supply= $6400 M1 component of money…

Q: Calculate M2 if M1 is $3600 million and the Savings deposit with post office Savings bank is $5000…

A: The data presented in the question above is:- M1 = $3600 million Savings deposit with post office…

Q: What are the functions of money?

A: The functions of money are: 1. Store of value 2. Medium of exchange  3. Unit of account 4. A…

Q: M1 includes currency, checkable deposits, and traveler's checks, but M2 does not include M1 in any…

A: False. M2 includes M1 along with savings and time deposits,  money market funds and certificates of…

Q: Discuss the kinds of money that were used at Japanese Occupation of the Philippines

A: Japanese Invasion Money (JIM):Japanese Invasion Money refers to the currency issued by the Japanese…

Q: Calculate M2 if :- M1 = $7500 million Saving deposit with post office Savings bank = $3300 million

A: The data presented in the question above is:- M1 = $7500 million Savings deposit with post office…

Q: Which of the following is not one of the three functions of money? Medium of Exchange Credit for…

A: Money has three important functions.

Q: Which items from the list is considered M1? Checking Accounts Coins Money market Account Paper…

A: The M1 form of money supply is considered as the most liquid form of money that is readily available…

Q: When you take a vacation and keep cash with you in case you might need it, money is serving as a:…

A: Money consists of paper currency and plastic coins which are considered to be a legal tender of…

Q: Distinguish between commodity money and fiat money

A: "Money act as a medium of exchange, store of value, a unit of account and a standard of deferred…

Q: Assume that the currency-deposit ratio is 0.5, the required reserve ratio is 0.1, and the excess…

A: here we calculate the following terms by using the given data , so the calculation of the following…

Q: Supply of money refers to the currency held by the central bank of the country  True/False

A: At a perticular period of time, the stock of money in total held by the people is refferd to be as…

Q: Suppose, in Bangladesh, commercial banks have current account deposits of 4600 crore taka. Their…

A: The cash reserve ratio is positively related to the total reserve. It means as total reserve rises…

Q: the total amount of us currency in circulation divided by the us population comes out to about 3500…

A: The money supply refers to the circulation of money in the economic system where the individuals…

Q: If C represents the currency-deposit ratio and r the reserve deposit ratio specified by the central…

A: Money multiplier is given as the ratio of total money supply to that of high powered money.  m= M/H…

IS-LM-PC Analysis

The IS (Investment Saving), LM (Liquidity Preference- Money Supply), and PC (Philips Curve) is the model that looks at the dynamics of output and inflation. It takes into account the central bank policy decision to adjust the inflation and real interest rate in the economy. It enables the economist to weather to priorities between employment and inflation rate analyzing the model. It is a practice-driven approach adopted by economists worldwide.  

IS-LM Analysis

The term IS stands for Investment, Savings, and LM stands for Liquidity Preference, Money Supply. Therefore, the term IS-LM model is known as Investment Savings – Liquidity preference money Supply. This model was introduced by a Keynesian macroeconomic theory which shows the relationship between the economic goods market and loanable funds market or money market. In other words, it shows how the market for real goods interacts with the financial markets to strike a balance between the interest rate and total output in the macroeconomy. This particular model is designed in the form of a graphical representation of the Keynesian economic theory principle. The output and money are the two important factors in an economy.