Question 42Refer to the following table to answer the next three questions.Checkable depositsCurrencyTraveler's checksMoney market mutual fundsSmall time depositsSavings depositsWhat is the value of M2?$1,540,000,000O $1,555,000,000$1,284,000,000$393,000,000$365,000,000$700,000,000$490,000,000$15,000,000$65,000,000$14,000,000$271,000,000 Question 41Refer to the following table to answer the next three questions.Checkable depositsCurrencyTraveler's checksMoney market mutual fundsSmall time depositsSavings depositsWhat is the value of M1?$1,284,000,000O $1,190,000,000$1,355,000,000$1,205,000,000O $1,219,000,000$700,000,000$490,000,000$15,000,000$65,000,000$14,000,000$271,000,000

Quantity theory of money states that the product of money supply and velocity is equal to the…

Refer to the following table to answer the next three questions. Checkable deposits Currency Traveler's checks Money market mutual funds Small time deposits Savings deposits What is the value of M1? $1,284,000,000 $1,190,000,000 $1,355,000,000 $1,205,000,000 $1,219,000,000 $700,000,000 $490,000,000 $15,000,000 $65,000,000 $14,000,000 $271,000,000

Refer to the following table to answer the next three questions. Checkable deposits Currency Traveler's checks Money market mutual funds Small time deposits Savings deposits What is the value of M1? $1,284,000,000 $1,190,000,000 $1,355,000,000 $1,205,000,000 $1,219,000,000 $700,000,000 $490,000,000 $15,000,000 $65,000,000 $14,000,000 $271,000,000

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter27: Money And Banking

Section: Chapter Questions

Problem 4SCQ: For the following list of items, indicate If they are in M1, M2, or neither: Your 5,000 line of...

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For the following list of items, indicate If they are in M1, M2, or neither: Your 5,000 line of credit on your Bank of America card 50 dollars worth of travelers checks you have not used yet 1 in quarters in your pocket 1200 in your checking account 2000 you have in a money market account
How can a bank end up with negative net worth?
If you take 100 out of your piggy bank and deposit it in your checking account, how did M1 change? Did M2 change?
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1. You deposit $100 of currency into your account. Explain what happens to reserves , checkabledeposits, and monetary base? 2. Explain what the shadow banking system is and how it works. 3. Your bank has the following balance sheet:Assets LiabilitiesReserves $70 million Checkable deposits $200 millionSecurities $50 millionLoans $130 million Bank capital $50 millionIf the required reserve ratio is 10%, what actions should the bank manager take if there is anunexpected deposit outflow of $50 million? Explain your answer. 4. Explain and demonstrate graphically that if the central bank pursues targeting a monetaryaggregate, it is likely to lose control over the interest rate. 5. In the market for reserves, the federal funds rate is equal to the interest rate paid on excessreserves. Explain and demonstrate graphically the effect of an open market sale on the federalfunds rate.
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