EconomicsExercice 2FiduciaryDemandTermUnits ofNegotiableDepositsrefundablecurrencydepositsdepositsmoneydebtwith awith < 3marketsecuritiesduration ofmonths'fundswith an< 2 yearsnoticeinitialmaturity <=2 yearsSeptember1330.88621.31080.22427.9618.60.320201) Define the monetary aggregates M1 and M2? Calculate the value of these two aggregates inSeptember 2020?Bank B has 10,000€ of excess reserves and decides to grant loans until these reserves are exhausted inorder to reserves until they are exhausted, in order to develop its activity. Knowing that the that the ECBimposes a reserve requirement of 5%, that bank A has a market share of 15% of bank deposits of bankdeposits of 15% and that banknotes represent 10% of the money supply (in the sense of M1),2) Calculate the total amount of credits granted by B and the amounts of the differentleakage it must face.

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Exercice 2 Fiduciary Demand Units of Deposits refundable Term Negotiable deposits deposits with a currency debt money market with < 3 securities duration of months' funds with an < 2 years notice initial maturity <= 2 years September 1330.8 8621.3 1080.2 2427.9 618.6 0.3 2020 1) Define the monetary aggregates M1 and M2? Calculate the value of these two aggregates in September 2020?

Exercice 2 Fiduciary Demand Units of Deposits refundable Term Negotiable deposits deposits with a currency debt money market with < 3 securities duration of months' funds with an < 2 years notice initial maturity <= 2 years September 1330.8 8621.3 1080.2 2427.9 618.6 0.3 2020 1) Define the monetary aggregates M1 and M2? Calculate the value of these two aggregates in September 2020?

Microeconomic Theory

12th Edition

ISBN:9781337517942

Author:NICHOLSON

Publisher:NICHOLSON

Chapter7: Uncertainty

Section: Chapter Questions

Problem 7.7P

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