Given below is data of an economy: Bank reserves = 40 billion, Demand deposits = 350 billion, Term deposits = 900 billion, Currency = 84 billion Based on the above data determine: a) the monetary base, b) monetary aggregate M1, c) monetary aggregate M2, d) overall money supply in economy.

Exploring Economics
8th Edition
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:Robert L. Sexton
Chapter25: Money, Banking, And The Federal Reserve System
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Given below is data of an economy:
Bank reserves = 40 billion, Demand deposits = 350 billion, Term deposits = 900 billion,
Currency = 84 billion
Based on the above data determine:
a) the monetary base,
b) monetary aggregate M1,
c) monetary aggregate M2,
d) overall money supply in economy.
Transcribed Image Text:Given below is data of an economy: Bank reserves = 40 billion, Demand deposits = 350 billion, Term deposits = 900 billion, Currency = 84 billion Based on the above data determine: a) the monetary base, b) monetary aggregate M1, c) monetary aggregate M2, d) overall money supply in economy.
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