Which of the following statements are true regarding the differences between M1+ and M2? Instructions: You may select more than one answer. Click the box with a check mark for correct answers, and click to empty the box for the wrong answers. ? M1+ Includes cash and reserves, whereas M2 does not. ? M2 represents a broader measure of the money supply than M1+. 2 Numerically, M1+ Is larger than M2. All Items in M1+ are more liquld than all Items In M2. ? M2 Includes savings deposits, whereas M1+ does not. During the recent recession, M1+ was a more stable measure of the money supply than M2.

Which of the following statements are true regarding the differences between M1+ and M2? Instructions: You may select more than one answer. Click the box with a check mark for correct answers, and click to empty the box for the wrong answers. ? M1+ Includes cash and reserves, whereas M2 does not. ? M2 represents a broader measure of the money supply than M1+. 2 Numerically, M1+ Is larger than M2. All Items in M1+ are more liquld than all Items In M2. ? M2 Includes savings deposits, whereas M1+ does not. During the recent recession, M1+ was a more stable measure of the money supply than M2.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Similar questions

Suppose the desired reserve ratio in Canada is 15%. Assume that the Bank of Canada has decided to increase the total quantity of money in the economy-as measured by M1-by $150 million. The Bank plans to do this by printing Canadian dollars. How much money must the Bank print to increase the money supply by the desired amount? (Calculate your answer in millions of CAD, round it to two decimal places, and write it without units. E.g., write 1.00 for $1 million.)
Suppose that currency in circulation is $600 billion, the amount of chequable deposits is $900 billion, excess reserves are $15 billion, and the desired reserve ratio ra is 10%. Calculate the money supply, the currency deposit ratio, the excess reserve ratio, and the money multiplier.
2
Currency (Coins and Paper Money), Demand Deposits and DD’s offered by other institutions are allcomponents of which level of Money supply Select one: M2 M2++ M2+ M3 M1
State all the components of the M2 money supply (you may not list M1 as a component, rather you must list the components of M1 individually.)
The table to the right shows hypothetical values, in billions of dollars. Use the table to calculate the M1 and M2 money supply for each year. (Enter your responses rounded to the nearest dollar.) Total M1 Total M2 2009 2010 2011 2012 ・・・ A. Currency B. Money market mutual fund shares C. Saving account deposits D. Money market deposit accounts E. Demand and checkable deposits Small-denomination time deposits F. G. Traveler's checks H. 3-month Treasury bills 2009 920 678 5,300 2010 2011 2012 930 932 937 683 681 690 840 3 1,990 5,580 5,768 5,905 1,210 1,241 1,270 1,325 1,010 982 871 1,133 1,576 3 2 1 2,378 2,440 2,506 990 1,003
Should the Federal Reserve take the decision to “create its own digital currency,” which of the following measures of money would such a decision have its greatest impact on? a) M1 b) M2 c) M3 d) Short-term deposits
Ms Lee deposited cash amounting RM5,000 in her Islamic term investment account. Demonstrate how will the behavior of Ms Lee (with the support of calculations) affect the amount of money supply M1, M2 and M3?
V2
Help!
In December 2000, currency was $340 billion, travelers checks were $4 billion; checkable deposits owned by individuals and businesses were $450 billion, saving deposits were $1,900 billion, time deposits were $1,000 billion; and money market funds were $900 billion. What was the M1 in December 2000?
If the monetary base in the country is 7126 billion, and the monetary aggregate M2 is 17909,2 billion, then the money multiplier is equal to: