Which of the following is not counted in​ M2?   A. U.S. Savings account balances   B. U.S. Checking account balances   C. All are counted in M2   D. U.S. currency in circulation overseas​ (in foreign ​countries)   E. U.S. currency in circulation

Q: Calculate the value of currency with public if M1 is $1,55,612 , demand deposits is 68,000 and other…

A: The information being given is as follows:- M1 = $1,55,612  Demand deposit = 68,000 Other deposit…

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: In the hypothetical country of Middlelandia, banks are required to hold 20% of checkable deposits as…

A: Round   Deposits   Required Reserves of (20%) Excess Reserves New loans None of the loan…

Q: Suppose that an open economy starts with $1,000 and all of this money is deposited into a First…

A: Given total amount of deposits in the bank = 1000 $ Total value of assets = required reserves +…

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: why did the people of Germany not accept Mark as their currency in 1923?

A: During this period of wars, the impact on the economy is negative.

Q: If the desired reserve ratio in a country is equal to 5% and the cash drain ratio is 30%, a deposit…

A: Required reserves is the portion of the deposits that a bank is supposed to keep with themselves and…

Q: In the fractional reserve banking system, if the required reserve ratio is 5%, then an initial…

A: Fractional reserve banking system: - In a fractional reserve banking system, the banks have to keep…

Q: Which of the following assets is not a component of the monetary base? Checking deposits All are…

A: According to me . The answer in step 2

Q: The M2 is $410 million and the savings deposit with post office savings bank is $320 million Find…

A: The information given is as :- M2 = $410 million Saving deposit with post office saving bank = $320…

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: Did you hear about bitcoin? Will the development in these other forms of money reduces the demand…

A: Yes, bitcoin is a type of cryptocurrency.

Q: Assume that the currency-deposit ratio is 0.5, the required reserve ratio is 0.1, and the excess…

A: We have been given that:- Currency deposit ratio(CD)=0.5 Required reserve ratio(RR)=0.1 Excess…

Q: 7. Match each concept in Column A with a definition or example in Column B. Column A Column B а.…

A: Since you have asked multiple sub-parts, we will solve the first three questions for you If you want…

Q: Give 3 advantages of using checks to pay for goods and services instead of physical coins and…

A: Answer - Advatages of using check - 1. Easy to carry - The checks are much easier to carry compare…

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: Which of the following functions of money is not standardized, meaning there is no system of value…

A: A system of value is in place then goods and services are valued (standard of account) and exchanged…

Q: Which of the following would not be counted as part of M1?   demand deposits traveler’s check…

A: ANSWER STEP-1 The following would not be counted as part of M1 is Ans:- option (C) money market…

Q: The currency with public is $330 million , demand deposits is $70 million and other deposit with…

A: The given information is as follows:- Currency with public = $330 million Demand deposit = $70…

Q: Which of the following is true (M = Money supply, cu = currency - deposit ratio, res = reserve -…

A: The money multiplier formula is given by: (1+cu)/(cu+res)

Q: 3 Which of the following statements is /are incorrect in explaining the difference between M1, M2,…

A: In an economy, the measurement of the money supply is M1, M2, and M3. These are also known as money…

Q: Consider the following scenario: c = currency-deposit ratio = 0.20 rr = required reserve ratio =…

A: Given: Currency deposit ratio (C) = 0.20 Required reserve ratio  (r) = 0.10 Excess reserve ration…

Q: In an economy, the M2 measure of money supply is $88,000 and M1 is $66,000 We have to calculate…

A: The information being given is:- M2 = $88,000 M1 = $66,000 Saving deposit with post office Savings…

Q: Which monetary aggregate resembles money in that it is directly and immediately usable as a medium…

A: M1 includes physical currency and coins, demand deposits, and other checkable deposits. M1 is the…

Q: Assuming initially that the required reserve ratio = 15%, the currency-deposit ratio = 40%, and the…

A:

Q: Following are the hypothetical data for two countries: Currency to Deposit Ratio in Country A= 0.5;…

A: The currency-deposit ratio describes the relationship between a person's cash holdings and the…

Q: M1 includes currency, checkable deposits, and traveler's checks, but M2 does not include M1 in any…

A: False. M2 includes M1 along with savings and time deposits,  money market funds and certificates of…

Q: Consider the following monetary data:   2000 2008 Monetary base ($bn) 8.5 8.7 Reserve deposit ratio…

A: Money multiplier = [1 - Currency deposit ratio] / [Currency deposit ratio + Reserve deposit ratio]

Q: Small time deposits ​   ​ 1014 ​ Money-market mutual funds held by businesses ​   ​ 1190 ​…

A: please find the answer below.

Q: Compute the impact on the money multiplier of currency-to-deposit ratio from an increase in the…

A: Money multiplier is negatively associated with Currency deposit ratio. Rise in the currency deposit…

Q: The desired reserve ratio is 1 percent of deposits, and the currency drain ratio is 2 percent of…

A: Desired reserve ratio = 1% = 0.01 Currency drain ratio = 2% = 0.02 ---------- Calculation of money…

Q: To control the money supply and prevent inflation, the Peoples Bank of China (PBC), which is…

A: The first option which the central bank uses is : Required Reserve ratio : The required reserve…

Q: Assume that the currency-deposit ratio is 0.5, the required reserve ratio is 0.1, and the excess…

A: here we calculate the following terms by using the given data , so the calculation of the following…

Q: How does the federal reserve regulate the flow and creation of U.S currency?

A: In the United States, Federal Reserve is the central authority to regulate the flow and creation of…

Q: Indicate which of the functions of money (a medium of exchange, a unit of account, and a store of…

A: A medium of exchange is an instrument that is used in intermediate or a system that is used to…

Q: Ella K. is visiting Turkey, where she notices that prices are posted in Türk lirası (the Turkish…

A: Money is generally accepted medium of exchange which helps in the purchase of goods and services.…

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

A: Reserve-deposit ratio depends on regulations and bank policies.

Q: Assume that there is a 10% required reserve ratio and the public deposits $20 million in the First…

A: Given Deposits = 20 Million $ Reserve ratio = 10 % Required reserves = 10 % of deposits = 2 Million…

Q: Which of the following is effective? A) Checks issued in foreign currency B) Foreign currencies in…

A: The currencies and the various notes would result in the addition to the money supply in the…