Given the following information, what are the values ofM1 and M2?Small time deposits$750 billionDemand deposits and other $420 billioncheckable depositsSavings deposits$700 billionMoney market mutual$1,550 billionfundsTravelers' checks$25 billionLarge time deposits$2,200 billionCurrency$300 billionMiscellaneous categories in $60 billionM2Suppose large time deposits of $1,200 billion matureand people decide to deposit $180 billion of thisamount in checking accounts, $800 billion in savingsaccounts, and the remaining amount in money marketmutual funds. How do these actions affect M1 andM2?

The measure which depicts the commodity that is in turn being accepted as a medium of economic…

Answered: Given the following information, what…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

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Problem 1QTC

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Using the M1 definition of Money, M1 = _____________ Category Amount Currency and coin held by the public $1,000 Checking account balances $2,000 Traveler's checks $50 Savings Account balances $4,000 Small denomination time deposits (CD) $3,000 Money market deposit accounts in banks (MMDA) $1,500 Money Market Mutual Fund Shares (MMMF) $2,500 Bitcoins $1,000 Select one: a. 7050 b. 2050 c. 3050 d. 1050
For this bank what would be the level of excess reserves if the required reserve ratio were 20%? A) 0 B) $300,000 C) $900,000 D) $1,000,000 E) There would be a shortfall in required reserves of $100,000
32
Which functions of money could each item fulfill? Instructions: Choose an answer for each item in each column. Store of Value? Medium of Unit of Account? Item Exchange? Identical ice cubes Identical 8-ton slabs of metal Identical small metal disks Houses Assorted fruit Yes No
Money Supply in Torania: Currency $13,000 Money Market Mutual Funds $87000 Checkable Deposits $23,000 Savings Accounts $38,000 Traveler's Checks $1,200 Time Deposits $34,500 Calculate M1: Calculate M2:
Answer the question below using the following information (all figures in billions of dollar) Given the data below Currency held outside banks $1000 Demand Deposit $2000 Saving deposit $1200 Money market fund $700 Time deposit $800 1 - The value of M1 equal 2 - The value of M2 equal
Answer the question below using the following information (all figures in billions of dollar) Given the data below Currency held outside banks $1000 Demand Deposit $2000 Saving deposit $1200 Money market fund Time deposit $700 $800 1 - The value of M1 equal 2 - The value of M2 equal В I III !!
Which of the following components is not included in the M2 definition of money? A) small-denomination time deposits. B) bonds. C) savings deposits. D) M1
55)Using the M2 definition of Money, M2 = Category Amount Currency and coin held by the public $1,000 Checking account balances $2,000 Traveler's checks $50 Savings Account balances $4,000 Small denomination time deposits (CD) $3,000 Money market deposit accounts in banks (MMDA) $1,500 Money Market Mutual Fund Shares (MMMF) $2,500 Bitcoins $1,000 Select one: a. 11,000 b. 14,050 c. 15,050 d. 13,050
The Island Nation of Murlonio prints its own currency called the Mariano. Use the data below to calculate the M1 measure of the money supply. Amount $4,763 $896 Source Cash in circulation Vault cash held in bank reserves Checking deposits $36,004 Savings deposits $20,824 Treasury Bills, Notes, and Bonds $45,392 Certificates of Deposit (under $100,000) $39,823 Individual Money Market Accounts $45,793 Corporate Bonds $34,580 Do not round your answer.
Table 1 below shows the different categories of money that make up Country A’s money supply. See image attached. 1. Calculate the value of M1 2. Calculate the value of M2 3. Calculate the value of long term deposits include M3 4. Which one of the components of M3 is the largest?
1.4 Suppose you transfer $4,000 from your money market mutual fund account to your checking account. What is the immediate impact of this transfer on M1 and M2? 1.5 Why do banks create money? Do they create money to help the Federal Reserve control the money supply or is there a more basic reason? 1.6 Suppose that the required reserve ratio is 2 percent, and you deposit $100,000 of currency into Chase Bank. What is the potential increase in deposits in the banking system brought about by your deposit? What is the potential change in the money supply?

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