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

Q: For the following list of items, indicate if they are in M1, M2, or neither: a. Your $5,000 line of…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub- parts…

Q: arah deposited in her checking account in bank A 10 million Dirhams. If the bank has zero dirhams in…

A: deposit Amount = 10 million Reserve ratio = 15%

Q: Could each of the following items potentially serve as money? Consider each as a medium of exchange,…

A: As we answer only three subparts and the question has more than 3 subparts, we would be answering…

Q: Give typing answer with explanation and conclusion Could each of the following items potentially…

A: Money is used as the currency for buying goods and services. Money replaced the barter system.

Q: How are bananas used as a form of money in Bananatown? A. Bananas function as a unit of account and…

A: Money refers to the medium of exchange. Money is accepted as payments for goods and services in an…

Q: Mr. Bill Smith lives in Dayton Ohio and always deposits money into a checking account in a bank…

A: (a) The concept of Money Multiplier effect basically shows the level of money creation or supply in…

Q: Which of the following are considered money? (Check all that apply):   A. Coins and paper money…

A: 1. Medium of exchange: Due to its widespread acceptance, money serves as a crucial medium of…

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: 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: s are able to create money in the economy if a. Banks loan out their excess reserves b. Banks do not…

A: The bank is an essential part of our economy to manage and control the money supply in the economy,…

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 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: What a bank owes to someone else is considered part of the bank’s ________. Select one: a.…

A: Assets: A property or a particular item owned by a person (like bank, company, etc.) that has value…

Q: Write a post that explains why money is not the universal measure of all value.

A: Money is the major consideration for all the people in today’s world. Without money the people…

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: Stealth bank has deposits of $300 million. It holds reserves of $20 million and has purchased…

A: bank net worth is calculated by the following formula:-     Net Worth = Total Assets – Total…

Q: Which function of money is best served by bitcoin?   A. A medium of exchange   B. A unit…

A: The bid=t coin is accepted to exchange for certain goods and services. This indicates the medium of…

Q: Required reserves of banks are a fixed percentage of their   a. deposits.   b. All of these…

A: ANS Reserve Requirement or the cash reserve ratio is the liquid cash amount in the proportion of its…

Q: Explain each of the following types of deposit accounts: a.demand deposit b.certificate of deposit…

A: A bank is an institute which deals in credit and money creating of the economy. It provides the…

Q: which of the following is included in M1?

A: Money supply is classified into various categories as M1, M2 ,M3 and in some countries there are…

Q: How has bitcoin evolved over time, and how may it evolve further in the future? Does it fully fulfil…

A: Bitcoin is a decentralized computerized currency that takes into consideration peer-to-peer…

Q: What are bank reserves?   a.Deposits that are held in the form of gold reserves  b.The fraction…

A: Bank reserves are the portion that is separated out of total deposits to meet the demand for cash.…

Q: Question The table below shows the components of M1 and M2 in the U.S. Use the table to calculate…

A: To calculate the total M1, we sum up the components of M1 from the data provided. According to the…

Q: Refer to the following table to answer the questions that follow. Checkable deposits Currency…

A: Money supply is the stock concept which means the  total amount of monet quantity or stock in the…

Q: If an individual moves money from a money market mutual fund to currency, Select one: a. M1+ stays…

A: Let's first understand what does M1 and M2 measures of money supply calculates:- M2  includes cash,…

Q: amping store, reviews a price list of various camping supplies before placing an order B. Tonya…

A: Unit of account means money serves as a common medium or unit of account for comparison .  Money…

Q: Table 1 below shows the different categories of money that make up Country A’s money supply.   See…

A: DISCLAIMER “Since you have asked multiple questions, we will solve the first 3 subparts for you, as…

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.