In the United States, the money supply ismade up of only currency in circulation.made up of only illiquid assets.considered commodity-backed.commonly defined as either M1 or M2.O always defined to include "near moneys."

In the United States, the money supply is *

the United States, the money supply is O made up of only currency in circulation. ) made up of only illiquid assets. O considered commodity-backed. O commonly defined as either M1 or M2. ) always defined to include "near moneys."

the United States, the money supply is O made up of only currency in circulation. ) made up of only illiquid assets. O considered commodity-backed. O commonly defined as either M1 or M2. ) always defined to include "near moneys."

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter12: Money And Banking

Section: Chapter Questions

Problem 8E

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Concept explainers

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.

Question

In the United States, the money supply is
made up of only currency in circulation.
made up of only illiquid assets.
considered commodity-backed.
commonly defined as either M1 or M2.
O always defined to include "near moneys."

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Which of the following characteristics is true of paper currency?O It is the only type of money included in M1.O It includes demand deposits.O It is a type of commodity.O It is the biggest component of M3.O It is fiat money.
Which of the following is not part of the M2 money supply? currency in circulation. credit card balances. small time deposits of less than $100,000. checkable deposits.
How does the Bank of Canada regulate the money supply? Check all that apply. By setting the interest rates on home mortgages and auto loans By setting reserve requirements By buying and selling stocks By buying and selling bonds through open-market operations By setting the banker's deposit rate
Your answer is incorrect. 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
Small-denomination time deposits are included in which of the following measures of the money supply of the United States? Select one: A. Neither M1 nor M2. B. Both M1 and M2. C. M2 but not M1. D. M1 but not M2.
Currency held outside banks + demand deposits + travelers checks + other checkable deposits = Group of answer choices M3. M3 - M1. M2 - M1. M1.
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?
Distinguish between legally required reserves and excess reserves.