You have been given the banking and financial data in the following table. Your boss wants you to calculate the M1 money multiplier (using the U.S. laws and regulations) but forgets to tell you which year the data pertain to. You call your boss and she tells you that the data is for 2018. In that case, you calculate the following for your boss: Currency in Circulation $100 Demand Deposits $1,000 Savings Deposits $4,400 Small Time Deposits (Less than $100,000) $2,000 Large Time Deposits (Greater than $100,000) $4,000 Money Market Mutual Funds Deposits Owned by Individuals $1,000 Money Market Mutual Funds Deposits Owned by Institutions $5,000 Total Reserves in the Banking System $2,100 a. m = 0.30 O b. m = 0.50 O c. m = 0.75 O d. m = 1.50 O e. m = 2.50
You have been given the banking and financial data in the following table. Your boss wants you to calculate the M1 money multiplier (using the U.S. laws and regulations) but forgets to tell you which year the data pertain to. You call your boss and she tells you that the data is for 2018. In that case, you calculate the following for your boss: Currency in Circulation $100 Demand Deposits $1,000 Savings Deposits $4,400 Small Time Deposits (Less than $100,000) $2,000 Large Time Deposits (Greater than $100,000) $4,000 Money Market Mutual Funds Deposits Owned by Individuals $1,000 Money Market Mutual Funds Deposits Owned by Institutions $5,000 Total Reserves in the Banking System $2,100 a. m = 0.30 O b. m = 0.50 O c. m = 0.75 O d. m = 1.50 O e. m = 2.50
Essentials of Economics (MindTap Course List)
8th Edition
ISBN:9781337091992
Author:N. Gregory Mankiw
Publisher:N. Gregory Mankiw
Chapter21: The Monetary System
Section: Chapter Questions
Problem 10PA
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Question 13
You have been given the banking and financial data in the following table. Your boss wants you to
calculate the M1 money multiplier (using the U.S. laws and regulations) but forgets to tell you which
year the data pertain to. You call your boss and she tells you that the data is for 2018. In that case,
you calculate the following for your boss:
Currency in Circulation
$100
Demand Deposits
$1,000
Savings Deposits
$4,400
Small Time Deposits (Less than $100,000)
$2,000
Large Time Deposits (Greater than $100,000)
$4,000
Money Market Mutual Funds Deposits Owned by
Individuals
$1,000
Money Market Mutual Funds Deposits Owned by
Institutions
$5,000
Total Reserves in the Banking System
$2,100
O a. m = 0.30
O b. m = 0.50
O c. m = 0.75
d. m = 1.50
O e. m = 2.50
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