Answered: Q9 With reference to Question 8 above,…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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(c) Use the following table to explain the effect of monetary policy on money supply in different scenarios. Copy the table in your answer booklet. Change in Money Supply Multiplier (Increase or decrease) and by how much? Money Required Reserve Action You deposit £1000 in a 10% bank CB buys £80,000 bonds 50% CB sells £20,000 bonds 20%
12) Based on the information in the table, we can conclude that, in 1932, each of the followin occurred except: December 1931 December 1932 Currency held by Reserve-deposit public (in billions) ratio $4.59 $4.82 0.095 0.109 Bank reserves (in billions) $3.11 $3.18 Money supply (in billions) $37.3 $34.0 A) The Federal Reserve injected reserves into the banking system. B) Banks were keeping more of their deposits in reserves, and making fewer loans. C) The Federal Reserve conducted open-market sales of U.S. government bonds. D) The public increased the amount of currency it held.
(a) Given that: Total deposit as of August 2021 in Indonesia = USD 621.2 Billion Total currency in circulation as of August 2021 = USD 93.2 Billion Reserve required as of August 2021 = 2% Total Excess Reserve as of August 2021 = USD 53.2 million From the above information: (i) Calculate the monetary base (ii) Calculate the money multiplier. What will be the total money supply? (iii) Suppose that the Indonesia Central Bank targeted money supply to grow by 3% next year. Suggest any ONE (1) way to achieved the targeted money supply.
41) Which of the following represents an action by a central bank which has the effect of decreasing the money supply? A) Selling government securities in the open market B) An increase in tax rates. C) Increasing the proportion of Treasury bills to government bonds that it uses to finance government borrowing D) A decrease in its repo rate
Please solve part (d) and (e).
Question 10 Why are credit cards excluded from the equation for money supply? Paragraph U ...
q6.1 solve ( d-e)
38 - Which of the following is not included in the definition of M2 Y money?A) official depositsB) demand depositsC) time depositsD) money in circulationE) Foreign currency deposits of residents
b. The following equation is used to model money supply under fractional-reserve bankıng: cr + 1 M x B cr + rr Identify the variables within the equation ii) i) Explain how the exogenous variables within the equation influence money supply and cause it to change. iii) Suppose the banks in an economy have a reserve-deposit ratio of 12 percent and the currency-deposit ratio is 25 percent. Also, the Central Bank increases the monetary base by $400 through open market operations, how would the money supply change?
Suppose that the following information describes the banking system in Belarus. Currency = $940 billion Checking Deposits = $1,475 billion Total Reserves = S198 billion Required Reserves = $177 billion (a) Calculate the level of the monetary base (MB) in the banking system of Belarus. (b) Given the above data calculate the money multiplier (m). Round vour answer to 2 decimal places.
§Suppose that the T-account for First National Bank is as follows: Assets Liabilities Reserves: 90.000-TL Deposits: 500.000-TL Loans: 410.000-TL § §If the Central Bank requires banks to hold 10% of deposits as reserves, how much in excess reserves does First National Bank now hold? MM=1/rr MM=1/(10/100) MM=10 40000*10=400000TL §Assume that all other banks hold only the required amount of reserves. If First National decides to reduce its reserves to only the required amount, by how much would the economy’s money supply increases?
q6 solve ( a-b-c)

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Q9 With reference to Question 8 above, the measure of money that will not be immediately affected by the above action by China’s central bank is: a) M1 b) M2 c) M3 d) Quasi money