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- Find the new deposits when the required reserve ratio is 20% and the initial change in the volume of deposit is 1000!!!If the actual reserve is given as 18,000 and the required reserves are 14,000 find the exchange reserveIf the reserve ratio was 15% and someone deposited an additional $40,000, what would be the maximum increase in total deposits over time? $6000 $40,000 $60,000 $266,667 $600,000
- An advantage that money has over other assets is that it: a. Provides a higher return to the owner b. Is a safer asset to hold during times of inflation c. Increases in value over time d. Has lower transaction costs to use as a means of payment than other assetsAlthough both deposit accounts can earn interest, savings accounts typically have higher rates than current accounts. True FalseMoney is least acceptable as a store of value when a.It is not easily transportable. b.It is not easily divisible. c.Its value is unstable. d.It has other uses.
- One limitation of using money as a store of value is that: a) money needs to be divisible and portable b) money loses value over time due to inflation c) money is not readily acceptable everywhere in return for goods and services d) money is not very liquidIf total deposit with post office is $31,000 and M4 is $19,000 Calculate M3Q) An economy has high powered money of $10 million. If cash drain is known to be 10%, find the required reserve ratio to ensure that total deposit by commercial banks will be $80 million without any excess reserve. A. 2.50% B. 5% C. 10% D. 20% Solve this early
- All items included in ____ are also included in ____, but ____ are not included in either M1 or M2 M2; M1; U.S. Treasury bills and cash advances M2; M1; small time deposits and savings accounts M1; M2; cash advances and U.S. Treasury bills M1; M2; Negotiable Order of Withdrawal accountsQ) An economy has high powered money of $10 million. If cash drain is known to be 10%, find the required reserve ratio to ensure that total deposit by commercial banks will be $80 million without any excess reserve A. 2.50% B. 5% C. 10% D. 20%An advantage that money has over other assets is that it: Answer a. Provides a higher return to the owner b. Is a safer asset to hold during times of inflation c. Increases in value overtime d. Has lower transaction costs to use as a means of payment than other assets