i need the answer quickly The table below provides data for a hypothetical economy.Currency outside chartered banksChequable notice deposits at near banksPersonal term deposits at near banksNon-chequable notice deposits at chartered banksPersonal term deposits at chartered banksOther liquid assets included in M2+Publicly held demand deposits at chartered banksCurrency inside chartered banksChequable notice deposits at chartered banksNon-chequable notice deposits at near banks$31 billion$23 billion$24 billion$42 billion$51 billion$26 billion$18 billion321 billion$34 billion$38 billionBased on this data:a. M1+ is $106 billionb. M2 is $billionc. M2+ is $ billion

M1 is equals to coins and currencies in circulation + demand deposits + traveler checks M2=…

Answered: The table below provides data for a…

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Which of the following factors pose a limit on the ability of commercial banks to increase the quantity of money in circulation by extending new loans? Select one or more: a. the quantity of Central Bank reserves that they own b. the quantity of money that savers lent to them by opening deposits c. the behavior of households and firms, which reduce the quantity of money in circulation by repaying previous loans. d. the availability of profitable lending opportunities in the economy e. the willingness of household and firms to take up new debts at the given interest rate
There are two types of open market operations carried out by the central bank, dynamic and defensive open market operations. What is the purpose of each type of open market operation? Describe two situations when defensive open market operations are used. How are defensive open market operations usually carried out?
Which one of the following is a correct sequence of events following a decrease in price level, assuming no change in government spending, taxes, and money supply? Group of answer choices Money demand decreases; interest rate decreases; and aggregate output decreases. Money demand increases; interest rate decreases; and investment increases. Money demand decreases; interest rate decreases; and aggregate output increases. Money demand increases; interest rate increases; and aggregate output decreases.
Which of the following is the sequence of events following an expansionary monetary policy? A ) money demand increases ⇒ interest rates increase ⇒ planned investment falls and aggregate output falls B ) aggregate output falls ⇒ the demand for money falls ⇒ interest rates rises ⇒ planned investment decreases C ) interest rates increase ⇒ planned investment decreases ⇒ aggregate output decreases ⇒ money demand decreases D ) interest rates decrease ⇒ planned investment increases ⇒ aggregate output increases ⇒ money demand increases
The federal funds rate is the interest rate that banks charge one another for short-term (typically overnight) loans. When the Federal Reserve uses open-market operations to sell government bonds, the quantity of reserves in the banking system_________(increase/decrease), banks' demand for borrowed reserves ________(rises/decline) , and the federal funds rate_______(increases/decreases).
In modern developed economies, central banks (like the U.S. Federal Reserve System) perform at least two major tasks; they: Select one: a. conduct fiscal policy and serve as financial intermediaries. b. control the money supply and collect tax revenues. c. conduct fiscal policy and serve as lenders of last resort. d. control the money supply and regulate banks.
If the U.S. economy enters a new financial crisis, the government may use monetary policy tools to avert a financial meltdown. The government may utilize monetary policy tools to avert a financial collapse if the U.S. economy experiences another financial crisis. First, the Federal Reserve should operate as a lender of last resort and make loans to banks and financial institutions to meet their short-term obligations. When the risk of a financial collapse has receded, the government should revert to its traditional expansionary monetary policy. Open market activities of buying and selling assets on the open market is one action the government may use. Through open market operations, the government may increase the economy's liquidity by purchasing assets from banks and the general public. Reducing the discount rate, i.e. the interest rate at which the central bank provides short-term loans to banks, will result in a decrease in the rate at which commercial banks offer loans to the…
Demonstrate graphically and explain verbally that the impact of expansionary monetary policy on the economy depends upon the position of equilibrium output in relation to potential output.
(J) Which one of the following statements is INCORRECT? In our financial market model . Select one: A. the SARB influences the quantity of money in the economy directly by influencing the cost of credit, and therefore the demand for money through changing the repo rate. B. a decrease in the repo rate decreases the interest rate and cost of credit in the economy, and consequently, the demand for and the quantity of money increase. C. the central bank will implement an expansionary monetary policy by decreasing the repo rate to stimulate the economy. D. a lower interest rate on bank loans to clients will increase demand deposits and the quantity of money increases.
To understand the important role played by banks in the economy, we need to imagine a world without banks. REQUIRED: A. Explain how economic transactions between household savers of funds and corporate users of funds would occur in a world without financial intermediaries. Identify and explain three economic disincentives that probably would dampen the flow of funds between household savers of funds and corporate users of funds in an economic world without financial intermediaries. Identify and explain the two functions in which FIs may specialize that would enable the smooth flow of funds from household savers to corporate users. In what sense are the financial claims of FIs considered secondary securities, while the financial claims of commercial corporations are considered primary securities?
Draw graphs and explain in no more than five sentences the effects on the equilibrium real interest rate (r) and equilibrium quantity demanded of money (M/P) of the following monetary policy, or of the change in the market for real goods and services. Assume that cash and government bonds are the only financial assets in the money or financial market. Note that M is nominal money supply, P is aggregate price level of real goods and services, and Y is aggregate real income, real output, or real GDP. The central bank raises the borrowing rate through its discount facility to banks at time t = 2. All other variables are assumed to be constant (i.e. P = P1 = P2, Y=Y1=Y2). Assume that the initial equilibrium real interest rate is r1, and equilibrium quantity demanded of real money is M1/P1 at time t = 1.
Which of the following assumptions is necessary for the money multiplier (m) to be used in the equation D=E×m (where D stands for the maximum checkable-deposit creation and E is the initial change in excess reserves)? A. People's marginal propensity to consume does not rise with income. B. Borrowers use the entire loan amount to pay others, who will deposit all of the funds in a checking account. C. Borrower default rates are stable.

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