The table shows the amounts held as the various components of M1 and M2. $billions Item 375 Savings deposits Checking deposits Small time deposits Money market funds and other deposits Currency and traveler's checks Calculate the value of M1 and M2. 225 270 The value of M1 is $ billion. 160 130 The value of M2 is $ billion.

Q: Question 41 Refer to the following table to answer this question Checking Deposits Currency…

A: M2 refers to the money supply which includes M1 , savings deposits, money market funds, and…

Q: Is demand deposit and current deposit at bank same

A: The bank is the financial institution which deals primarily in the accepting and mobilizing the…

Q: Type of deposit/aggregate Amount (Rbn) Bank notes and coins 57 Short term deposits 82 Cheques and…

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

Q: B. Consider the following data Currency Checkable deposits Savings deposits $800 billion $1,000…

A: Currency= $800 billion Checkable deposits= $1,000 billion Saving deposits= $3,000 billion Reserve…

Q: Other things constant, a decrease in credit card balances would___ M1 and ___ M2. A. increase;…

A: M1 money supply is the narrow money which is most liquid in nature, it includes cash, traveler's…

Q: Total Reserves are $5 Trillion. Required Reserves are $2 Trillion. Calculate the Excess Reserves. Is…

A: ANS Excess Reserve = Total Reserve - Reserve Requirement Given; Total Reserve = $5 trillion and…

Q: 33. Which of the following is a function of money? a. a unit of account b. medium of exchange c. a…

A: Any verifiable record or an item that is accepted as mode of payment or transactions for goods or…

Q: Savings deposits = $2221.5b Demand Deposits = $1880.6b Required reserve ratio = 9% Currency in…

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

Q: (Table: Monetary Aggregates II) Use Table: Monetary Aggregates II. The value of M2 is: Table:…

A: Meaning of Money Supply: The term money supply refers to the situation under which the overall…

Q: Consider the following data. Value (S bilions) 657 3.094 1.546 Item Currency Savings and money…

A: Money refers to anything that can be used as a medium of exchange. It should be widely accepted.…

Q: Calculate the value of M1 if currency with public is $84000 million , demand deposits is $68000…

A: The given information is as follows:- Currency with public = $84,000 million Demand deposit =…

Q: total reserves equals?

A: Total reserves of a bank means sum of all deposits a bank has. It means all the assets bank has to…

Q: Currency (C) =  800 Reserves (R) =  400 Deposits (D) = 1600   What is the value of the monetary…

A: Monetary base is either held by public as currency or held by the banks as reserves

Q: Item Value (S billions) Currency Savings and money market deposit accounts Small-denomination time…

A: Money supply in the economy is measured using several instruments namely M1, M2, M3, and M4. M1 is…

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: The following table shows the money supply for country SODA in the year 2018. Items USD Million…

A: There are four measure of money supply, which are M1, M2, M3 and M4. All are aligned according to…

Q: According to the table to the​ right, the value of M1 is   A. ​$1,313 billion.   B. ​$1,888 billion.…

A: For this question, first we look at the definition of M1 measure of money supply. M1 or narrow money…

Q: Billions of Item Dollars Checkable Deposits Small Time Deposits Currency Money-Market Mutual Funds…

A: M1, M2, M3,M4 are measures of money supply where M2 includes currency with public, checkable…

Q: Solve the attachment

A: Given information: Current account depsoits = $8000000 Saving account deposits = $4000000 Commercial…

Q: 4. The economy of Baruchville contains 2000 $1 bills. A.) If people hold all money as currency, what…

A: Given that economy of Baruchville contains $1 worth 2,000 bills. A) If the people hold all the money…

Q: In an economy the net time deposit with banks is $38,000 million and M3 is $66,000 Calculate the…

A: The information being given is:- Net time deposit with banks = $38,000 M3 = $66,000 We have to…

Q: 1. In May 2017, currency held by individuals and businesses was $1,469 billion; traveler's checks…

A: The measure that depicts currency and other instruments that are liquid in the economy of a country…

Q: Mira deposited $10,000 in a saving account at “B" bank on September 2018. On November 2018 she…

A: M1 = Checking account + Currency = 9000 + 1000 = 10000 M2 = M1 + Saving account = 10000 + 0 = 10000…

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: Calculate M1 if:- Currency with public = $23,000 Demand deposit = $11,000 Other deposit with RBI…

A: The data presented in the question above:- Currency with public = $23,000   Demand deposit = $11,000…

Q: The type of currency in circulation in the r O metallic money O commodity money silver certificates…

A: Definition: The US economy is a mixed economy. It works as per a monetary framework that describes…

Q: Billions of Item Dollars Checkable Deposits Small Time Deposits Currency Held by the Public Savings…

A: M1 is one of the measures of money supply. It is the most liquid and narrow form of measuring money.…

Q: Money supply in Jordan : C = 4000, DD = 5000, over night deposits 2000, DD in foreign currencies…

A: M1, M2, M3 all are measures of the money supply.  M1= Cash in hands of the public (Notes and coins…

Q: The economy of Moneyland contains 5000 $1 bills. a. If people hold all money as currency, what is…

A: Quantity of money = Currency + Demand deposits

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: Calculation of M1 $ billions Currency $1,271.8 Traveler’s checks $2.9 Demand deposits and other…

A: Given the information: Currency = $1271.8 Traveler's check = $2.9 Demand deposits = $1713.5

Q: Question: Given the following information: Initial Reserve Deposit…

A: In an economy, when central bank sets a specific required reserve ratio, it implies that a specific…

Q: 3. Consider the following data Currency Checkable deposits Savings deposits $1,200 billion $1,500…

A: Bank reserves = 30 % of checkable deposits = 0.3 * 1500 = 450 $   Monetary base = currency +…

Q: sing the M1 definition of Money, M1 = _____________ Category Amount Currency and coin held by the…

A: M1 comprises of the most liquid components of money supply. It contains currency and assets that can…

Q: Answer questions 1-4 about Nigeria's macroeconomy (Nigeria's currency): Currency in Circulation…

A: A monetary base is that the total amount of a currency that's either normally circulation within the…

Q: Money Supply in Torania: Currency $13,000 Money Market Mutual Funds $87000 Checkable Deposits…

A: Given values:

Q: Calculate the value of M1 and M2. Item Sbillions Savings deposits Checking deposits Small time…

A: M1 and M2 are measures of money supply.

Q: The economy of XYZ contains 3,000 $1 bills. If people hold equal amounts of currency and demand…

A: Here, given information is, Initial monetary base (deposits): $3000 Required reserve ratio: 30%…

Q: Fiat money isa. a type of money with intrinsic value.b. a type of money set by government decree.c.…

A: Fiat Money is the most common form of currency used for the transaction which is issued by 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…

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.