What are included in the monetary indicators (M1, M2, LF, L) provided by the Bank of...

What are included in the monetary indicators (M1, M2, LF, L) provided by the Bank of Korea?
Investigate and visualize the increasing trend of each indicator since 2000.

Solutions

Expert Solution

M1and M2 are monetary aggregates set by Bank of Korea and LF and L are liquidity aggregates.M1=currency in circulation +demand deposits at deposit money banks.M2 refers to M1 plus money market funds, cash management accounts, short term money in trust,securities investment savings account,short term time and savings deposit in national currency, short term foreign currency deposit of non bank financial institutions, certificates of deposit etc.Lf and F are liquidity aggregates and not monetary aggregates as mentioned above .It is the liquidity of financial institutions.

After the crisis of the 90's the economy of Korea had strong growth in 2000 with GDP growth of 9.08 per cent.Monetary indicators increased sharply since 2000.Money supply M1 incresaed to 973571.40KRW in feb2020 from 939624.90KRW billionin jan 2020.M2 incresaed 8.1%in feb 2020.The liquidity of finnacila institutions called Lf increased to 8.3 %in 2019.

Rahul Sunny answered 1 week ago

Next > < Previous

Related Solutions

I need to know what happens to the M1 and M2 for each (For 1 &...

I need to know what happens to the M1 and M2 for each (For 1 & 2). Answer choices are [increase, decrease, unchanged] 1.) Ethel pulls $10,000 out from under her bed and deposits it in her savings account. As a result M1 _______ and M2 _________ 2.) Joel purchases a share of Microsoft Stock through a broker for $44 from Celeste. Joel pays for the stock with funds from his Money Market brokerage account and Celeste deposits the proceeds...

How are M1 and M2 equations related to reserve market (interbank)? Let’s say, central bank applies...

How are M1 and M2 equations related to reserve market (interbank)? Let’s say, central bank applies “passive policy” thru “rule”. How does this situation affect this relationship?

How are M1 and M2 equations related to reserve market (interbank)? Let’s say, central bank applies...

How are M1 and M2 equations related to reserve market (interbank)? Let’s say, central bank applies “passive policy” thru “rule”. How does this situation affect this relationship?

1) Define M0, M1, M2 and M3 and answer the following parts: a) What is the...

1) Define M0, M1, M2 and M3 and answer the following parts: a) What is the reason for using these different measures of money supply? b) Is there a measure of money supply that is NOT affected by the banking multiplier, i.e. that is determined solely by the actions of the Central Bank? c) Which nominal interest rate is controlled by the Central Bank? How? d) Under which assumptions about the determinants of the Term Structure of Interest Rates could...

3) Explain the three ways money is used. What are the components of M1? M2? Explain...

3) Explain the three ways money is used. What are the components of M1? M2? Explain the two types of money and give examples. When did we leave the gold standard and why? 5) Define an equity security and a debt security. What makes them different? Give an example of each. How does trading occur in each of these markets? How can diversification reduce portfolio risk, explain what that would look like in holdings?

1) Define MB, M1, M2 and M3. 2) What is the reason for using these different...

1) Define MB, M1, M2 and M3. 2) What is the reason for using these different measures of money supply? 3) Is there a measure of money supply that is NOT affected by the banking multiplier, i.e. that is determined solely by the actions of the Central Bank? 4) Which nominal interest rate is controlled by the Central Bank? How?

What is the International Monetary Fund? What is the World Bank? What is their relationship, if...

What is the International Monetary Fund? What is the World Bank? What is their relationship, if any, with each other?

What are the functions of a central bank? What are the tools of monetary policy? How...

What are the functions of a central bank? What are the tools of monetary policy? How does the FED use these tools to perform its functions?

What are the tools of monetary control used by central banks, such as the Bank of...

What are the tools of monetary control used by central banks, such as the Bank of England, the European Central Bank? Why cannot central banks fully control the money supply If the central bank wants to increase the money supply with outright open-market operations, what does it do? pleae qicly

1) What is the difference between the World Bank and the International Monetary Fund and what...

1) What is the difference between the World Bank and the International Monetary Fund and what role do they play in developing countries?

Subjects