In an economy, the M2 measure of money supply is $88,000 and M1 is $66,000 We have to calculate Saving deposit with post office saving bank

Q: Say that First Commercial Bank has reserves of $100, loans at $400 and checkable deposits of $500.…

A: Reserve ratio is the ratio on which commercial bank reserve the deposited amount , this is the…

Q: Suppose I live in a hypothetical country, Pandesia, where there is 100% reserve banking. I deposit…

A: Given information Initial deposits=$1000 Required reserves=100% 100% reserve banking is known as…

Q: Consider the following information on money supply in South Africa: rr = required reserve…

A: Money supply depends on the reserve ratio. The rise in reserve ratio leads to fall in the money…

Q: The information in the following table pertains to the hypothetical economy of Lalaland. Amount Type…

A: We have to find M1 and M2 money supply from the given table.

Q: The monetary base of Moneyland is $500 million. The current-deposit ratio (is 0.2 and reserve…

A: Monetary base = $500 million Cr = 0.2 rr = 0.2  Money Multiplier =  1+crrr+cr+erwhere  cr = currency…

Q: 1. When someone moves money from a saving account to a demand deposit, the size of M1 will: a.…

A: M1 cash supply incorporates those monies that are extremely fluid like money, checkable (request)…

Q: Discuss the three functions of money and the characteristics needed to make money n effective medium…

A: A medium of exchange is an instrument or system that facilitates the sale, purchase, or exchange of…

Q: If an individual moves money from a savings account to a checking account M1 increases and M2…

A: Introduction: A checking account is a deposit account that lets you withdraw and deposit in a bank.…

Q: When our children were young, we saved their personal funds like cash birthday gifts in savings…

A: M1 is the measure of money which includes the following - M1 = Cash + Checking Deposits + Demand…

Q: his question asks you to work through an open-market sale of $7,000 in securities to Bank 1. The…

A: Open market operations means selling or buying of government securities that would result in a…

Q: 1. If the U.S. Treasury deposits income tax receipts into its account at the Federal Reserve, then…

A: In the federal reserve system, US treasury is the separate entity as it regulates receipts and…

Q: The reserve requirement is 25%, and the banking system receives a new $1,000 deposit. The bank does…

A: Reserve Requirement = 25% Deposit = 1000

Q: The economy of Quarterville currently has a level of M1 equal to $49.000. If there are $38,000 worth…

A: Savings deposits = $38000 Moneny market funds = $89000 Time deposits = $32000 M1 = $49000

Q: Let's assume that in a hypothetical economy currency in circulation is $600 billion, the amount of…

A: There are various measurements of money supply such as M1 , M2 ,M3 and M4 .  But most liquid…

Q: Assume that the banking system has total reserves of Rs.250 billion. Assume also that required…

A: Banking system: It refers to the system in which the banks provide loans and money to the people who…

Q: Part 2 - Practice- For each of the following examples, identify if it is considered M1 money supply,…

A: Money supply: It refers to the total stock of domestic money owned by the public in a country. It…

Q: Last month, individuals and businesses held: Currency $ 400 billion checking deposits $ 9000 billion…

A: All out Deposits means the total measure of the stores as of the end of business on the Closing…

Q: What is the largest component of M1 money supply?   a.Travelers checks b.Demand deposits c.Coin…

A: Money supply refers to all the currency and other liquid monetary instruments in a country’s economy…

Q: n Country Wise, households and firms want to keep a currency to deposit ratio, c, of 0.20, while…

A: The money multiplier measures the change in money supply due to a change in the monetary base. Money…

Q: You take Rs. 100 you had kept under your mattress and deposit it in your bank account. If this Rs.…

A: Answer: Given, Initial deposit = Rs. 100 Reserve requirement (RR)= 20% = 0.2 (1). The formula for…

Q: Calculate the Money Multiplier, given the following informatio- rrr = .14 %3D Total Deposits: $7800…

A: Calculate the reserve ratio  = Total Reserves / Total deposits = $2000 /$7800 = 28%

Q: Calculate the value of M2 given that the M1 measure of money supply is $85,000 and saving deposit…

A: The data presented in the question is:- M1 measure of money supply = $85,000 Savings deposit with…

Q: Which of the following is not included in the definition of M2 Y money? A) official deposits B)…

A: M2 money supply is the form of money that include liquid money and near money that can be changed to…

Q: efer to the table below. em Dollars In Billions heckable Deposits $600 mall Time Deposits $700…

A: Money supply is mainly divided into M1 , M2 and M3 , these are the indicators of money supply , so…

Q: Use the information in the table below to answer the following two questions. Items Billions of $…

A: Answers   1. M1 = M2 --savings deposit - money market fund - small time deposit = 13700 - 700 -…

Q: You take Rs. 400 you had kept under your mattress and deposit it in your bank account. If this Rs.…

A: In the field of economics, money defined as an asset or a group of assets that individuals in the…

Q: 2.) There are three types of money: commodity money, commodity-backed money, and fiat money. Which…

A: Commodity Money : The money which is used as a medium of exchange whose value comes out of commodity…

Q: Which of the following is a function of money? a. a unit of account b. medium of exchange c. a store…

A: ANS: d.All of the above are correct     Money has various functions they can be broadly classified…

Q: Item Billions of Dollars Money market mutual $50 funds Currency in the hands of the public 650 Small…

A: There are different forms of money due to which those are classified as M1, M2, M3, and so on based…

Q: Isabella takes $100 of currency from her wallet anddeposits it into her checking account. If the…

A: The central bank sets a certain minimum percentage of the total deposits to be kept with the…

Q: If deposits in the banking system are $540, while the reserve ratio is 0.2 and the currency to…

A: The sum of banking reserves and the currency in circulation referred to as high-powered money.

Q: Explain how banks create money using your own example of a T-account.Define the deposit and RRR…

A: A deposit is a term used in finance to describe money deposited in a bank. A deposit is a financial…

Q: The net time deposit with banks is $400 million and the M1 component of money supply is $870 million…

A: M3 is a measure of money supply that includes time deposits , money market funds and liquid assets…

Q: If deposits in the banking system are $540, while the reserve ratio is 0.2 and the currency to…

A: Total demand for high powered money can be calculated by using the following formula.

Q: The people in an economy have $10 million in money. There is only one bank that all the people…

A: The formula for money multiplier: Money multiplier = 1 / Required Reserve Ratio

Q: The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve…

A: Checkable deposits = 100,000 + 5,000 = $105,000 Required reserves = 105,000 * 20% = $21,000 Excess…

Q: Calculate M2 if in the Economy is M1 is $10,000 million and Savings deposit with post office is…

A: The information being given is:- M1 = $10,000 Savings deposit at post office = $7700  We have to…

Q: Which group in the federal goverment is responsible for counting M1 and M2 money amounts?   A.…

A: The USDT or the Department of the Treasury is the national treasury of the government of the U. S.…

Q: The Third National Bank has reserves of $20,000 and checkable deposits of $100,000. The reserve…

A: 1)In the bank’s balance sheet, the deposits are the liabilities and the reserves are the…

Q: Table 1 below shows the different categories of money that make up Country A’s money supply.   See…

A: DISCLAIMER “Since you have asked multiple questions, we will solve the first 3 subparts for you, as…

Q: a. Calculate the dollar value of the reserves that the Bank of Uchenna is required to hold. b. Given…

A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…

Q: What are demand deposits and why should they be included in the stock of money? (Word count: 100…

A: Any item that is accepted as payment for the goods and services provided by an economy is referred…