**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 ||-----------------------------------------------------|----|----|| Charles has $3,000 in a savings account. | ☑ | ☑ || Juanita has $8,000 in a two-year certificate of deposit (CD). | | ☑ || Gilberto has $25,000 in a money market account. | | ☑ |This table helps illustrate the classification of different types of financial accounts in terms of the money supply components M1 and M2:- **M1** includes the most liquid forms of money, such as cash and checking accounts.- **M2** includes all of M1 plus savings accounts, time deposits like certificates of deposit (CDs), and money market accounts.

Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes. M1 Example Charles has $3,000 in a savings account. Juanita has $8,000 in a two-year certificate of deposit (CD). Gilberto has $25.000 in a money market account M2

Identify whether each of the following examples belongs in M1 or M2. If an example belongs in both, be sure to check both boxes. M1 Example Charles has $3,000 in a savings account. Juanita has $8,000 in a two-year certificate of deposit (CD). Gilberto has $25.000 in a money market account M2

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: The commercial banking system has excess reserves of $3,000. Then new loans of $30,000 are…

A: Reserve are the part of deposit that is kept out of deposit by the banks. Multiplier = 1/r Where r…

Q: Components of Money Supply Money Market Mutual Fund Balances Held by Businesses $ 100 Money Market…

A: The objective of the question is to calculate the value of additional options in the given economy…

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: Given the following information, what are the values of M1 and M2? Small time deposits $750 billion…

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

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

A: The M1 and M2 are two different measures of the supply of money in the economy. The M1 is the narrow…

Q: Calculate M1 and M2 using the following info: Large denomination time deposits $304 billion…

A: M1 = notes and coins + travelers check + demand deposits + checkable depositsM1== $438B + $18B + 0 +…

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: Given the following information, what would be the value of M1? Small time deposits $650…

A: Money supply is used to calculate the flow of money in the economy. The money is the medium of…

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: reserve ratio

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

Q: Moving to another question will save this response. estion 2 For the following list of items,…

A: The money supply is measured through the money supply measures M1, M2 and M3. The M1 is most liquid…

Q: Consider the following data. Calculate M1. $ Calculate M2. $ billion. billion. Item Currency Savings…

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

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: Q.1.2 Money as a medium of exchange consists of: (1) Demand deposits; (2) Debit cards; (3) Credit…

A: Money is a type of asset that is used by people to buy goods and services from other people. Money…

Q: If a bank has $30,000,000 in deposits, excess reserves of $2,000,000, and required reserves of…

A: Given deposits = 30,000,000 Excess reserves = 2,000,000 Required reserves = 1,500,000

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

A: Money basically refers to anything that can be used as a common medium for the exchange of goods or…

Q: The commercial banking system has excess reserves of $1,000. Then new loans of $10,000 are…

A: Required reserve ratio is the ratio of required reserves to total deposits and is defined by:…

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: The required reserve ratio is 25% for all banks. Second National Bank is capable of loaning $ (Do…

A: Net worth is positively related to reserves. It means as reserves rise then net worth fall and as…

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: How to calculate the value of deposits when given excess reserves and reserve ratio

A: In an economy, differ ratios are calculated to analyze economic condition and the division of a…

Q: bank has outstanding loans of $7,500, reserves of $2,500, and deposit liabilities of $10,000. If…

A: Reserves requirement ratio is the percentage of deposits that a company is required to hold as…

Q: How has Ethereum (cryptocurrency) evolved over time, and how may it evolve further in the future?…

A: Ethereum is a decentralized blockchain stage that was sent off in 2015 by Vitalik Buterin. It is the…

Q: Checkable Deposits $597 Small Time Deposits 818 Currency 639 Money-Market Mutual Funds Held by…

A: In economics, money is defined as anything that is widely accepted as a medium of exchange. There…

Q: The table below indicates the current valuos of various money accounts. All figures are denominated…

A: Given: Currency outside banks=$357 Travelers cheques=$30

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: If a bank has a required reserve ratio of 25% and there are $5,300,000 in deposits, what is amount…

A: The formula for required reserves : deposits × required reserve ratio = 5,300,000 × 0.25 =…

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: Don't use ai to answer I will report your answer Solve it Asap with explanation and calculation

A: Required Reserves: The total sum of money that banks are required by law to keep on hand.Reserves…

Q: Which of the bank safety regulations enacted in the 1930s do you believe are most important in…

A: The bank is an institution that plays an important role between households and businesses.…

Question

**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 |
|-----------------------------------------------------|----|----|
| Charles has $3,000 in a savings account. | ☑ | ☑ |
| Juanita has $8,000 in a two-year certificate of deposit (CD). | | ☑ |
| Gilberto has $25,000 in a money market account. | | ☑ |

This table helps illustrate the classification of different types of financial accounts in terms of the money supply components M1 and M2:

- **M1** includes the most liquid forms of money, such as cash and checking accounts.
- **M2** includes all of M1 plus savings accounts, time deposits like certificates of deposit (CDs), and money market accounts.

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Define money

VIEW

Step 2: Identify the given examples in M1 and M2

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Considering the following data (expressed in billions of U.S. dollars), calculate Ml and M2. Explain. Currency 1,050 Savings deposits 5,500 Small-denomination time deposits 1,000 Traveler’s checks outside banks and thrifts 10 Total money market mutual funds 800 Institution-only money market mutual funds 1,800 Transactions deposits 1,140
Your answer is incorrect. The economy of Greatstown currently has $60.00 million worth of currency in circulation, $2.00 million worth of traveler's checks, $5.00 million in small time-deposits, and $30.00 million in savings deposits. Total M1 is equal to $120.00 million. Calculate the amount of checkable deposits in Greatstown: 58000000
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 Kyoko has $6,000 in a six-month certificate of deposit (CD). Jacques has $2,000 in a savings account. Darnell has a roll of quarters that he just withdrew from the bank to do laundry. M1 00 M2 U D
If banks require 10% of transaction deposit in reserve, How much is the required reserve? How much is the excess reserve?
If a bank currently has $10,000 Excess Reserves, $20,000 Required Reserves, and $30,000 Actual Reserves. What is the maximum amount of loans the bank could make? Multiple Choice $10,000 - up to its Excess Reserves $20,000 - up to its Required Reserves Under the above conditions, the bank could not make any additional loans $30,000 - up to its Actual Reserves
Only typed answer and don't use chat gpt
How has bitcoin evolved over time, and how may it evolve further in the future? Does it fully fulfil all three functions of money?
Calculation of M1 $ billions Currency $1,271.8 Traveler’s checks $2.9 Demand deposits and other checking accounts $1,713.5 Savings accounts $7,712.1 Time deposits $509.2 Individual money market mutual fund balances $610.8
What is the Bangladesh bank money-laundering prevention act
Question The table below shows the components of M1 and M2 in the U.S. Use the table to calculate Total M1. Round to the nearest third decimal place. Provide your answer below: trillion Components of M1 and M2 in the U.S. Currency Traveler's checks Demand deposits and other checking accounts Savings accounts Time deposits Individual money market mutual fund balances $ trillions $1.2 $0.004 $2.204 $9.805 $0.527 $1.176
What are the four functions that money serves?
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