Savings deposits = $2221.5bDemand Deposits = $1880.6bRequired reserve ratio = 9%Currency in circulation = $1100.0bVault Cash = $91.5bHousehold money market mutual fund = $1753.3bCertificates of deposit (value< $100,000) = $2450.0bBanking system deposits with the Fed = $208.2bHousehold money market deposits accounts =$1588bCertificates of deposit (value > $100,000) = $4827.6bInstitutional money market accounts = $3864.3bTreasury Bills = $458.3bCalculate M2 using the multiplier method.

M2 is the part of money supply which includes the components of M1 and other deposits , and money…

Answered: Savings deposits = $2221.5b Demand…

Savings deposits = $2221.5b Demand Deposits = $1880.6b Required reserve ratio = 9% Currency in circulation = $1100.0b Vault Cash = $91.5b

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter25: Money, Banking, And The Federal Reserve System

Section: Chapter Questions

Problem 4P

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Question

Savings deposits = $2221.5b
Demand Deposits = $1880.6b
Required reserve ratio = 9%
Currency in circulation = $1100.0b
Vault Cash = $91.5b
Household money market mutual fund = $1753.3b
Certificates of deposit (value< $100,000) = $2450.0b
Banking system deposits with the Fed = $208.2b
Household money market deposits accounts =
$1588b
Certificates of deposit (value > $100,000) = $4827.6b
Institutional money market accounts = $3864.3b
Treasury Bills = $458.3b
Calculate M2 using the multiplier method.

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