Macroeconomics (Book Only)
12th Edition
ISBN: 9781285738314
Author: Roger A. Arnold
Publisher: Cengage Learning
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Chapter 12, Problem 5WNG
To determine
Identify the value of M1.
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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
The economy of Torania has an M2 equal to $
4500.00. If money market funds total $120.00,
savings accounts total $2500.00, and time deposits
total $220.00, what does M1 equal?
For the following list of items, indicate if they are in M1, M2, or neither:
a. Your $5,000 line of credit on your Bank of America card
b. $50 dollars’ worth of traveler’s checks you have not used yet
c. $1 in quarters in your pocket
d. $1200 in your checking account e. $2000 you have in a money market account
Chapter 12 Solutions
Macroeconomics (Book Only)
Ch. 12.2 - Prob. 1STCh. 12.2 - Prob. 2STCh. 12.2 - Prob. 3STCh. 12.3 - Prob. 1STCh. 12.3 - Prob. 2STCh. 12.3 - Prob. 3STCh. 12.4 - Prob. 1STCh. 12.4 - Prob. 2STCh. 12.4 - Prob. 3STCh. 12 - Prob. 1VQP
Ch. 12 - Prob. 2VQPCh. 12 - Prob. 3VQPCh. 12 - Prob. 4VQPCh. 12 - Prob. 5VQPCh. 12 - How much money did you make last year? What is...Ch. 12 - Prob. 2QPCh. 12 - Prob. 3QPCh. 12 - Prob. 4QPCh. 12 - Prob. 5QPCh. 12 - Prob. 6QPCh. 12 - Prob. 7QPCh. 12 - Prob. 8QPCh. 12 - Prob. 9QPCh. 12 - Prob. 10QPCh. 12 - Prob. 11QPCh. 12 - Prob. 12QPCh. 12 - Prob. 13QPCh. 12 - Prob. 14QPCh. 12 - Prob. 15QPCh. 12 - Prob. 16QPCh. 12 - Prob. 17QPCh. 12 - Prob. 1WNGCh. 12 - Prob. 2WNGCh. 12 - Prob. 3WNGCh. 12 - Prob. 4WNGCh. 12 - Prob. 5WNGCh. 12 - Prob. 6WNGCh. 12 - Prob. 7WNGCh. 12 - Prob. 8WNGCh. 12 - Prob. 9WNGCh. 12 - Prob. 10WNG
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- Given the following information, what are the values of M1 and M2? Small time deposits $750 billion Demand deposits and other $420 billion checkable deposits Savings deposits $700 billion Money market mutual $1,550 billion funds Travelers' checks $25 billion Large time deposits $2,200 billion Currency $300 billion Miscellaneous categories in $60 billion M2 Suppose large time deposits of $1,200 billion mature and people decide to deposit $180 billion of this amount in checking accounts, $800 billion in savings accounts, and the remaining amount in money market mutual funds. How do these actions affect M1 and M2?arrow_forwardQuestion 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 $1.176arrow_forwardGiven the following information, what are the values of M1 and M2? Small time deposits $650 billion Demand deposits and other checkable deposits $30 billion Savings deposits $750 billion Money market mutual funds $600 billion Travelers' checks $25 billion Large time deposits $600 billion Currency $100 billion Miscellaneous categories in M2 $25 billionarrow_forward
- Checkable Deposits $597 Small Time Deposits 818 Currency 639 Money-Market Mutual Funds Held by Businesses 1,045 Savings Deposits, Including Money-Market Deposit Accounts 2,656 Money-Market Mutual Funds Held by Individuals 979 Refer to the accompanying table. The value of the money included in M2 but not counted in M1 is Multiple Choice $4,453 billion. $818 billion. $2,656 billion. $5,498 billion.arrow_forwardA bank has the following deposits and assets: Checkable deposits held by individuals and businesses, $380 Savings deposits held by individuals and businesses, $1,280 Small time deposits, $575 Loans to businesses, $1,809 Outstanding credit card balances, $300 Government securities, $125 Currency in the bank's vault, $1 Reserve account at the Fed, $8 Calculate the bank's total deposits, deposits that are part of M1, and deposits that are part of M2. The bank's total deposits are $ Deposits that are part of M1 are $ Deposits that are part of M2 are $arrow_forwardM1 includes currency, checkable deposits, and traveler's checks, but M2 does not include M1 in any way. True Falsearrow_forward
- The First National Bank of Townville has $125,000 in U.S. government securities, $200,000 in savings accounts, $300,000 in checking accounts, $50,000 in its reserve account at the Fed, $10,000 of currency in its vault, and loans of $250,000. What is the amount of its reserves? Show your calculations.arrow_forwardGiven the following information, what would be the value of M1? Small time deposits $650 billion Checking deposits $300 billion Savings-type accounts $750 billion Money market mutual funds $600 billion Travelers' checks $ 25 billion Large time deposits $600 billion Cash in hand $100 billionarrow_forwardHow has bitcoin evolved over time, and how may it evolve further in the future? Does it fully fulfil all three functions of money?arrow_forward
- A depositor decides to transfer $3,000 from a checking account to a savings account. Create a balance sheet for the bank and show how the balance sheet will be affected due to this change. Only list the changes on your balance sheet. Then explain what will happen to the M1 and M2 money supplies.arrow_forwardCalculate M1 and M2 using the following info: Large denomination time deposits $304 billion Currency and coin held by the non-banking public $438 billion Checkable deposits $509 billion Small denomination time deposits $198 billion Traveler’s checks $18 billion Savings deposits $326 billion Money market mutual fund accounts $637 billionarrow_forwardAnswer the question below using the following information (all figures in billions of dollar) Given the data below Currency held outside banks $1000 Demand Deposit $2000 Saving deposit $1200 Money market fund $700 Time deposit $800 1 - The value of M1 equal 2 - The value of M2 equalarrow_forward
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