Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes. Example M1 M2 Clancy has a roll of quarters that he just withdrew from the bank to do laundry. Hubert has $2,000 in a savings account. Kate has $6,000 in a six-month certificate of deposit (CD).

Q: If I own Hawkins Savings and Loan, and a customers makes a $8,000 deposit, what is the total amount…

A: Reserve requirement ratio is the portion of total liability which should be kept. Given information…

Q: Set forth and describe two of the basic qualities needed for any item to be used as money.

A: Money is a resource or asset that is accepted and used as an exchange medium to buy commodities and…

Q: Third National Bank has reserves of $20,000 and checkable deposits of $200,000. The reserve ratio is…

A: Checkable Deposits = Original Amount + Amount deposited by households Required Reserves = Checkable…

Q: You can walk into any department store and compare prices on jeans. Which of the following functions…

A: Money as a unit of account, or measure of value refers to that function of money that helps us to…

Q: Name any item that is a store of value, but does not serve the other functions of money. Explain…

A: "The three main functions of money are a medium of exchange, store of value, and a unit of account."

Q: Use the information below to answer the following questions Currency in circulation Credit card…

A: Hi! thanks for the question but as per the guidelines, we can answer up to three subparts at one…

Q: In the POW camps during World War II, cigarettes fulfilled the functions of money because they acted…

A: Money is a widely accepted transaction prices hold value over a time period. The value of money is…

Q: Second National Bank is capable of loaning $____________

A: Reserves refer to the amount that commercial banks are required to keep aside from lending to the…

Q: Bank of Sin City has $250 million in deposits. Bank of Sin City is meeting its reserve requirement…

A: Banks are financial institutions that act as an intermediary between the depositors and the debtors.…

Q: Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both,…

A: M1 and M2 are two aggregates that are used to calculate a nation's money supply. The most liquid…

Q: A main difference between using cigarettes and using dollars as money is that    have intrinsic…

A: Intrinsic value : The inherent value of an object or commodity that is not based on its monetary or…

Q: A depositor decides to transfer $3,000 from a checking account to a savings account. Create a…

A: Macroeconomic monitoring will remain vital since it determines both the economy's final expansion…

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: reserve ratio

A: Money creation takes place according to given reserve ratio. The reserve ratio and money creation…

Q: A depositor decides to transfer $3000 from a checking account to a savings account. Create a balance…

A: Macroeconomic monitoring will remain vital since it determines both the economy's final expansion…

Q: Consider the following data. Value (S bilions) 657 3.094 1.546 Item Currency Savings and money…

A: Money refers to anything that can be used as a medium of exchange. It should be widely accepted.…

Q: The economy of Torania has an M2 equal to $ 4500.00. If money market funds total $120.00, savings…

A: To find M1, we need to consider the components of M2 that are included in M1. M1 consists of…

Q: Item Value (S billions) Currency Savings and money market deposit accounts Small-denomination time…

A: Money supply in the economy is measured using several instruments namely M1, M2, M3, and M4. M1 is…

Q: Explain why credit cards are not considered as money.

A:

Q: Calculate Total Potential Deposit Creation given the following information. rrr = .12 Total…

A: Given Information Reserav ratio(rrr) = 0.12 Total Deposit = $6300Toal Reserve = $5500

Q: In our daily life we use credit cards and debits cards for payments. Are credits cards considered…

A: Anything that is extensively used as a medium of exchange and accepted as payment is considered to…

Q: Find the required reserve if the excess reserve is $600 and the actual reserve is $100

A: In the given question Excess reserve = $600 Actual reserve = $100 Required reserve value needed =?

Q: What components of money do we count in M2?

A: Answer: Introduction: Money: Money is the stock of assets used for transactions. For instance,…

Q: Define the functions of money. Explain in detail. Thank you.

A: Money is any tangible item or verifiable document that is regularly accepted as payment for goods…

Q: 6. Reserve Bank of India is bound to maintain a reserve against the note issue whatever may be the…

A: Rbi is india central bank which is basically responsible for the supply and issue of the indian…

Q: The money in your personal checking account is counted as:   A. Neither M1 nor M2 money…

A: M1 is the measure of money which includes -  M1 = Cash + Demand Deposits + Deposits in Checking…

Q: In many casinos, a person buys chips to use for gambling. Within the casino's walls, customers often…

A: Given : In casinos, chips are used as money to purchase goods and services.

Q: When a bank issues a loan to a customer:     A) bank assets fall by the amount of the…

A: Bank is financial institution that controlled and monitor by the central bank of the respective…

Q: Given the following information, what are the values of M1 and M2? Small time deposits Demand…

A: Money supply is the sum of all the available money in the economy which is composed of currencies,…

Q: Suppose you’re at the mall shopping for a pair of shoes and run into NBA player LeBron James. You…

A: Money is any satisfactory that is comprehensively used and recognized in trades including the…

Q: Calculate the initial deposit if total money creation is $25,000 and the legal reserve ratio is 18%

A: The information being given is:- Total money creation in the economy = $25,000  Legal reserve ratio…