Q2. The total amount of U.S currency in circulation divided by the U.S population comes out to about $3,500 per person. That is more than most of us carry. Where is all the cash?

Q: Checkable Deposits $497 Small Time Deposits 818 Currency 635 Money-Market Mutual Funds Held by…

A: Money supply can be defined as a volume of cash held by general society at a selected point on…

Q: Suppose you deposit $1,900 cash into your checking account. By how much will checking deposits in…

A: The correct answer is given in the second step.

Q: Which type of money do we currently use in the United States ?

A: There are different types of money. The most relevant types are commodity money, fiat money,…

Q: What is the maximum amount of money created from a $3 million deposit in the banking system if the…

A: Given information - Deposits = $3 million Required reserve ratio = 0.05 The maximum amount of money…

Q: In ancient Greece, why was gold a more likely candidate for use as money than wine?

A: Money is something which is has a general acceptability and is a common medium of exchange to buy…

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

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

Q: How does the federal government regulates banking and our money supply

A: We are going to analyze relationship between federal government and banking to answer this question.

Q: If the reserve ratio was 20% and someone deposited an additional $8,000, what would be the maximum…

A: Reserve ratio = 20%  Credit multiplier = 1/ RR = 1/20% = 100/20 = 5  Deposits = $8000  Total deposit…

Q: Which of the following is NOT included as M1 money?   A. Currency   B. Travelers checks…

A: Based on the liquidity the monetary authority defines the money. M1 money comprises very liquid…

Q: If M3 is $200 million and M1 is $88 million Find the value of net time deposit with banks

A: The information being given to us is as follows:- M3 = $200 million M1 = $88 million We need to…

Q: What are two advantages and one disadvantages of using cash as THE MAIN medium of exchange?

A: Medium of exchange: -any item that can be accepted as an exchange for goods and services serves the…

Q: Given the following information, what are the values of M1 and M2? Small time deposits $650 billion…

A: M1, the most narrow definition of the money supply, includes coins and currency in circulation. It…

Q: If excess reserves are $10,000, demand deposits are $100,000 and the required reserve ratio is 10%,…

A: Given,   Excess reserve = $10,000 Demand deposit = $100,000 Required reserve ratio = 10%

Q: The functions of money are * a. medium of exchange, unit of account, and means of payment b.…

A: Money is the most liquid form of asset which can be used to buy goods and services.

Q: The total amount of U.S. currency in circulation divided by the U.S. population comes out to about…

A: The aggregate volume of money available in an economic region at a point in time constitutes its…

Q: You just earned $25.000 which you deposit it in a bank account, How much can fractional-reserve…

A: Credit creation refers to the expanision of deposits, bank can use credit  creation to increase the…

Q: Which of the following is not counted in​ M2?   A. U.S. Savings account balances   B. U.S. Checking…

A: M2 = M1 + saving deposits with banks M1 = Coins and currency in circulation +checking account…

Q: What are some measures to remove the defects of Indian money market?

A: Introduction - When compared to advanced markets such as New York and London Money Markets, the…

Q: Which volume of OMOs is required to decrease money supply by $700,000 billion, if demand for…

A: Money multiplier is the ratio of money supply to high powered money, it shows by how much money…

Q: For a required reserve ration of 10% and reserves equal to $50, how much money could could be…

A: Answer: The commercial banks keep a part of the reserves in the form of required reserves and loan…

Q: Differentiate between bank money and central bank money.

A: A central bank is a bank for bankers. The financial system is often managed by an institution that…

Q: The type of currency in circulation in the r O metallic money O commodity money silver certificates…

A: Definition: The US economy is a mixed economy. It works as per a monetary framework that describes…

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: In the United States, which of the following systems was established to be in charge of money?Choose…

A: The United States of America's central bank is the Federal Reserve which is also known as the Fed.…

Q: If you take $100 out of your piggy bank at home and deposit it into your checking account, how did…

A: M1 is the summation of currency in circulation, a demand deposit, travelers check, and other…

Q: Why are bank accounts included in our definition of the money supply?

A: It is the total stock of money that is held by the people of a country at a particular time.

Q: Anything can be money if it acts as aa. unit of account.b. store of value.c. medium of exchange.d.…

A: The money demand curve shows the inverse relationship between interest rate and quantity of money…

Q: What is the Bangladesh bank money-laundering prevention act

A: Money laundering is viewed as an offence since it has conceivably wrecking financial, security, and…

Q: Considering the criteria of being a medium of exchange, a unit of account and a store of value,…

A: Money has many primary functions or criteria such as a store of value, a unit of account, and medium…

Q: John withdraws $ 100 from his checking account and deposits it in his savings account. What will be…

A: C stands for the money that is in circulation. Since john is firstly withdrawing and then depositing…

Q: Compare and contrast representative money, credit money and commodity money

A: Representative money:- It can be defined as the means of commerce, frequently printed on paper, that…

Q: You sell $10,000 of money market mutual fund shares and deposit them in a checking account with a…

A: M1 is a narrower concept which includes currency in circulation ie the coins and notes with public…

Q: If currency outstanding equals $200 million, checkable deposits equal $1 billion, reserves equal…

A: Currency (C) = $200 million Checkable deposit (D) = $1 billion = $1000 million Currency to Deposit…

Q: Is barter becoming more or less prevalent in the US economy? What are some underground market…

A: Answer - Need to find- "Thank you for submitting the question.But, we are authorized to solve one…

Q: Calculate the legal reserve requirement if initial deposit of $300 million lead to creation of total…

A: The information given is as follows:- Initial deposits = $300 million Total deposit = $1800 million…

Q: If ours were a barter economy, how would you pay your tuition bill? What if your college did not…

A: The system in which one commodity is exchanged for another commodity is known as barter system.

Q: “Whenever currency is deposited in a commercial bank, cash goes out of circulation and, as a result,…

A: The money supply in the economy of a nation on the date calculated is both the currency and other…

Q: Suppose that the banking system in Ghana has a required reserve ratio of 10 percent while the…

A: The reserve requirement refers to the regulations against the minimum amount of total reserves the…

Q: If the desired reserve ratio of a banking system is 10%, and there is a currency drain of 10%, what…

A: Money multiplier: - it is the ratio that shows the maximum amount of money that can be created with…

Q: reserves are equal to $0 when the reserve ratio is 10%, the bank has deposits of $

A:

Q: Over the years, the Federal Reserve Banks have printed many billions of dollars more in currency…

A: The federal reserve system refers to the central banking system that is followed in the U.S. Many…

Q: Money as a means of payments refers only to: a. Actual currency b. Coins and currency c. Coins,…

A: Money is a mean of exchange in the form of coins and notes, it is generally accepted as a payment…

Q: What is the convertible paper money?

A: There are in total two types of representative money which are:- (1) Convertible paper money (2)…

Q: When $100 is deposited in the banking system, it leads to maximum expansion in bank deposits of…

A: Here, given information is: Change in deposits: $100 Maximum change in money supply: $1,000 To…

Equilibrium Price and Quantity

Equilibrium refers to a state of balance that comes about because there is equality in all forces.