For each of the following assets, indicate which of the monetary aggregates M1 +, M2+, and M2 + + includes them. a. Currency is included in b. Money market mutual funds are included in c. Fixed-term deposits are included in d. Chequable deposits at chartered banks are included in only M2+ and M2 + +. only M1+ and M2 + +. only M2+. only M1+ and M2 +. only M2 + +. only M1 +. M1+, M2+, and M2 + +. none of M1+, M2+, and M2 ++.

For each of the following assets, indicate which of the monetary aggregates M1 +, M2+, and M2 + + includes them. a. Currency is included in b. Money market mutual funds are included in c. Fixed-term deposits are included in d. Chequable deposits at chartered banks are included in only M2+ and M2 + +. only M1+ and M2 + +. only M2+. only M1+ and M2 +. only M2 + +. only M1 +. M1+, M2+, and M2 + +. none of M1+, M2+, and M2 ++.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Using money to pay debts in the future appeals to its ability to function as a a. medium of exchange b. store of value c. unit of account d. all of the above. e. none of the above.
Consider an individual who immigrates to Canada and deposits $5,000 into the Canadian banking system. Suppose that all commercial banks have a target reserve ratio of 10 percent and that individuals do not hold any cash from the loans borrowed from the banking system. The eventual total change in deposits of the banking system after this impact is $ 50000. The eventual total change in reserves of the banking system after this impact is $ The eventual total change in loans of the banking system after this impact is $
Refer to the following table to answer the questions that follow. Checkable deposits Currency Traveler's checks Money market mutual funds Small time deposits Savings deposits Using the table, what is the value of M2? a. $57,500,000 b. $46,500,000 c. $65,000,000 d. $47,500,000 e. $13,500,000 $12,500,000 $34,000,000 $1,000,000 $10,000,000 $7,000,000 $500,000
If an individual moves money from a money market mutual fund to currency, Select one: a. M1+ stays the same and M2+ stays the same b. M1+ increases and M2+ decreases C. M1+ stays the same and M2+ increases d. M1+ increases and M2+ stays the same
In an economy, savings deposits are $10,000 billion, currency is $1,500 billion, checkable deposits are $4,000 billion, money market funds and other deposits are $1,000 billion, and small time deposits are $200 billion. What are the values of M1 and M2? M1 is _______ and M2 is _______. A. $16,700 billion; $5,500 billion B. $5,500 billion; $16,700 billion C. $15,500 billion; $6,700 billion D. $1,500 billion; $20,700 billion
11. Commercial banks: implement monetary policy. are nonprofit organizations that lend and borrow funds. are financial intermediaries that lend funds and accept deposits. all of the above.
The Monetary Control Act of 1980 extended theFed’s authority toa. impose required reserve ratios on all depositoryinstitutions.b. control the discount rate.c. control the federal funds rate.d. All of the answers are correct.
1. "The earlier predictions underestimated currency in circulation and government balances at the central bank, both of which drained reserves from the banking system." a) Explain how these two things drain reserves from the banking system.
Money serves 4 functions. Which of the following is incorret a- money serving b-unit of account c- medium of exchange d- store of value
Haley sells a share of stock and deposits the proceeds into her saving account at a bank. a. Her assets as M1- increases, decreases, or stays the same b. Her assets as M2 -increases, decreases, or stays the same c. Reserves at her bank- increases, decreases, or stays the same
Money aggregates
The measure of the money stock called M1 includes a. wealth held by people in their checking accounts. b. wealth held by people in their savings accounts. c. wealth held by people in money market mutual funds. d. everything that is included in M2 plus some additional items