Table: Statistics for a Small EconomyItemValue (millions)$7130Money market mutual funds18Checkable deposits36Currency and total reserves at the Fed 12Large-time deposits20Demand deposits14Cash held by publicSmall-time depositsThe table shows some statistics for a small economy. Based on only the information provided, M2 in thiscountry amounts to:$105 million.$121 million.$137 million.$129 million.

M2 is a measure of the money supply that includes all elements of M1 as well as "near money."M1…

Table: Statistics for a Small Economy Item Cash held by public Small-time deposits Money market mutual funds 18 Checkable deposits 36 Currency and total reserves at the Fed 12 Large-time deposits 20 Demand deposits 14 The table shows some statistics for a small economy. Based on only the information provided, M2 in this country amounts to: $105 million. Value (millions) $7 30 $121 million. $137 million. $129 million.

Table: Statistics for a Small Economy Item Cash held by public Small-time deposits Money market mutual funds 18 Checkable deposits 36 Currency and total reserves at the Fed 12 Large-time deposits 20 Demand deposits 14 The table shows some statistics for a small economy. Based on only the information provided, M2 in this country amounts to: $105 million. Value (millions) $7 30 $121 million. $137 million. $129 million.

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section12.3: How Banking Developed

Problem 3ST

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Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 42Deposits 245Loans 160 Securities 48Other $X Using the balance sheet above, find the level of required reserves for this bank if the required reserve ratio = 8%(Give answers to 2 decimal places as needed)
Below is the balance sheet for a bank. Under "Other" it has listed "$X" just think of this as the dollar amount needed to make the balance sheet balance. It is not important what that value is for this question. AssetsLiabilitiesReserves 44Deposits 255Loans 155 Securities 51Other $X Using the balance sheet above, find the level of excess reserves this bank is holding if the required reserve ratio = 6%(Give answers to 2 decimal places as needed)
You take $100 you had kept under your mattressand deposit it in your bank account. If this $100stays in the banking system as reserves and if bankshold reserves equal to 10 percent of deposits, byhow much does the total amount of deposits in thebanking system increase? By how much does themoney supply increase?
Bank A:Reserves on hand $38,000Deposit in the Fed $30,000US government bonds $12,000Checking account balances $120,000Savings account balances $25,000Bank B:Reserves on hand $50,000US government bonds $7500Savings account balances $20,000Checking account balances $100,000 In addition, people in this economy hold $8800 in cash, and all banks have the same reserve requirements we've used all semester. Calculate the amount of cash in Bank A, carefully following all numeric instructions.
Bank A:Reserves on hand $38,000Deposit in the Fed $30,000US government bonds $12,000Checking account balances $120,000Savings account balances $25,000Bank B:Reserves on hand $50,000US government bonds $7500Savings account balances $20,000Checking account balances $100,000 In addition, people in this economy hold $8800 in cash, and all banks have the same reserve requirements we've used all semester. Calculate this economy's monetary base, carefully following all numeric instructions.
Bank A:Reserves on hand $38,000Deposit in the Fed $30,000US government bonds $12,000Checking account balances $120,000Savings account balances $25,000Bank B:Reserves on hand $50,000US government bonds $7500Savings account balances $20,000Checking account balances $100,000 In addition, people in this economy hold $8800 in cash, and all banks have the same reserve requirements we've used all semester. Calculate the (economy-wide) currency ratio, carefully following all numeric instructions. Do not convert the ratio into percent. In other words, if you get k of 0.99, enter only 0.99 in the blank.
Bank A:Reserves on hand $38,000Deposit in the Fed $30,000US government bonds $12,000Checking account balances $120,000Savings account balances $25,000Bank B:Reserves on hand $50,000US government bonds $7500Savings account balances $20,000Checking account balances $100,000 In addition, people in this economy hold $8800 in cash, and all banks have the same reserve requirements we've used all semester. Calculate the "real-world multiplier," carefully following all numeric instructions.
Suppose the total reserves held by banks amount to R13.09 million. Banks hold R1 in excessreserves for every R10 of required reserves held and the required reserve ratio (r) is 8.5%. Thetotal amount of currency = R60 million. Calculate the amount of required reserves, and totalamount of deposits held by banks, and the total amount of money supply in the system.
Suppose Universal Bank holds $100 million in assets,which are composed of the following:Required reserves: $10 millionExcess reserves: $ 5 millionMortgage loans: $20 millionCorporate bonds: $15 millionStocks: $25 millionCommodities: $25 millionDo you think it is a good idea for Universal Bank tohold stocks, corporate bonds, and commodities asassets? Why or why not?
QUESTIONS 1 Jane Doe has the following assets: $100 in her wallet $800 in her demand deposit account $1,000 in her savings account A $50 traveler’s check from her last trip to China A $300 outstanding credit card bill A car worth $5,000 A house worth $200,000 Identify which of the assets are included in M1, which are in M2, or neither M1 nor M2. ii) Suppose she takes $400 for her demand deposit account and deposits it in her savings account. What is the change in M1 and M2? b) Many savers choose to hold their funds at a financial intermediary instead of lending them directly in financial markets. Explain TWO (2) reasons why financial…
2. Determine whether each of the following is included in both M1 and M2 or M2 only: a. a Connecticut quarter b. a savings account at a local savings bank c. a share draft account at a credit union d. money market deposit accounts e. American Express travelers' checks
ou just deposited $4,000 in cash into a checking account at the local bank. Assume that banks lend out all excess reserves and there are no leaks in the banking system. That is, all money lent by banks gets deposited in the banking system. Round your answers to the nearest dollar. If the reserve requirement is 1212%, how much will your deposit increase the total value of checkable bank deposits? $ If the reserve requirement is 44%, how much will your deposit increase the total value of checkable deposits? $ Increasing the reserve requirement the money supply.