3. Use the figures in the table below to answer the following questions. Billions Small time deposits Money-market mutual funds held by businesses Savings deposits, including money- market deposit accounts Money-market mutual funds held by individuals Checkable deposits Currency $1250 1300 1620 905 836 325 (a) What is the value of M1? $ billion (b) What is the value of M2? $ billion

3. Use the figures in the table below to answer the following questions. Billions Small time deposits Money-market mutual funds held by businesses Savings deposits, including money- market deposit accounts Money-market mutual funds held by individuals Checkable deposits Currency $1250 1300 1620 905 836 325 (a) What is the value of M1? $ billion (b) What is the value of M2? $ billion

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter21: The Monetary System

Section: Chapter Questions

Problem 3PA

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Similar questions

Explain why the money listed under assets on a bank balance sheet may not actually be in the bank?
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
Explain how to use an open market operation to expand the money supply.
Suppose the Fed conducts an open market sale by selling $10 million in Treasury bonds to Acme Bank. Sketch out the balance sheet changes that will occur as Acme restores its required reserves (10% of deposits) by reducing its loans. The initial balance sheet for Acme Bank contains the following information: Assets - reserves 30, bonds 50, and loans 250; Liabilities - deposits 300 and equity 30.
If you are out shopping for clothes and books, what is easiest and most convenient for you to spend: M1 or M2? Explain your answer.