Question
In: Economics
(a) Suppose you are given the following data: Currency outside banks $2000 Personal deposits at chartered...
(a) Suppose you are given the following data:
Currency outside banks $2000 Personal deposits at chartered banks $20000
Non-personal demand and notice deposits at chartered banks $20000
Deposits at other financial institutions (TMLs, CUCPs, government-owned saving institutions, money market mutual funds and life insurance company individual annuities) $10000
Non-personal term and foreign currency deposits $10000
What are M2, M3 and M2+? Assume adjustments to the various aggregates are zero (b) Should a $100 bill stuffed in your mattress be counted as M2? Why?
Solutions
Rahul Sunny answered 1 year agoRelated Solutions
6) Which of the following is INCORRECT? A) The currency owned by chartered banks is NOT...
6) Which of the following is INCORRECT?
A) The currency owned by chartered banks is NOT included in the
money supply.
B) When chartered banks retire outstanding loans, the supply of
money is increased.
C) The net export effect may partially counteract an
expansionary fiscal policy.
D) The central bank expands money supply by lowering target for
overnight lending rate and/or buying securities
11. Which of the following is correct? When the Bank of Canada
buys bonds on the open...
Total value of corporate shares $500 billion Currency outside chartered banks $48 billion Chequable...
Total value of corporate shares
$500 billion
Currency outside chartered banks
$48 billion
Chequable notice deposits at chartered banks
$108 billion
Publicly held demand deposits at chartered
banks
$51 billion
Federal government bonds
$643 billion
Other liquid assets included in M2+
$38 billion
Nonpersonal term and foreign-currency deposits at
chartered banks
$274 billion
Personal term deposits at chartered banks
$140 billion
Non-chequable notice deposits at chartered
banks
$100 billion
Chequable notice...
Using the information below, answer the following questions on money: Currency outside banks Coins and Paper...
Using the information below, answer the following questions on
money:
Currency outside banks
Coins and Paper money
110
Traveler’s cheques
4,340
Charter Banks Chequable deposits
140
TMLs & CUCPs Chequable deposits
50
Money market mutual funds
7,760
TMLs & CUCPs Total Deposit
1,600
Savings & Time Deposit
6,700
Part 1: The value of 'M1+' is:
Part 2: The value of 'M2' is:
Part 3: The value of 'M2+' is:
If the public decides to hold more currency and fewer deposits in banks, what happens to...
If the public decides to hold more currency and fewer deposits
in banks, what happens to bank reserves and the money supply after
all adjustments are made?
QUESTION 6 Consider an economy where banks keep 25% of deposits as reserves. Currency is 50...
QUESTION 6
Consider an economy where banks keep 25% of deposits as
reserves. Currency is 50 billion pesos, which constitutes 10% of
the monetary base.
(a) Calculate the monetary base.
(b) Calculate the money supply.
(c) If the central bank requires a
reserve-deposit ratio of at least 10%, calculate banks' excess
reserves.
(d) If the currency-deposit ratio increases by 3
percentage points, calculate the resulting money supply assuming
that the monetary base and the reserve-deposit ratio...
3. Give a brief description of the following: National Banks, State Chartered Banks, Credit Unions, Savings...
3. Give a brief description of the following: National Banks,
State Chartered Banks, Credit Unions, Savings Banks/Thrifts.
You are given the following data regarding a Latin American country currency=50 billion
You are given the following data regarding a Latin American
country currency=50
billion
demand deposits=100
billion
bank reserves=20
billion
a. Define and calculate the
following
monetary
base
money
supply
money
multiplier
b. Suppose during the month of May country’s central bank gains
international resererves by an amount equal 10 billion. Assuming
Central Bank credit remains unchanged,
what will be impact the gain in international reserves on:monetary
base, money
supply
c. The goverment wants to keep the money supply...
You are given the following data regarding a Latin American country currency=50 billion
You are given the following data regarding a Latin American
country currency=50
billion
demand deposits=100
billion
bank reserves=20
billion
a. Define and calculate the
following
-monetary
base
-money
supply
-money
multiplier
b. Suppose during the month of May country’s central bank gains
international resererves by an amount equal 10 billion. Assuming
Central Bank credit remains unchanged, what will be impact the gain
in international reserves on:monetary base, money
supply
c. The goverment wants to keep the money supply...
Suppose the Fed requires banks to hold 9 percent of their deposits as reserves. A...
Suppose the Fed requires banks to hold 9 percent of their deposits as reserves. A bank has $18,000 of excess reserves and then sells the Fed a Treasury bill for $9,000. How much does this bank now have to lend out if it decides to hold only required reserves?
Selected Answer:
c.
$27,000
Answers:
a.
$9,000
b.
$26,190
c.
$27,000
Suppose that currency in circulation (C) is $100 billion, the amount of checkable deposits (D) is...
Suppose that currency in circulation (C) is $100 billion, the
amount of checkable deposits (D) is $750 billion, and excess
reserves (ER) are $15 billion. Also, the required reserves (RR) are
$37.5 billion. Calculate the money supply (M), the total reserves
(R), the monetary base (MB), the currency-to-deposit ratio (c), the
required reserve ratio (rD), the excess reserve-to-deposit ratio
(e), and the money multiplier (m).
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