1.
COMPUTATIONAL TABLE
Variables |
CURRNS |
TCDNS |
RESBALNS |
RESBALREQ |
Values in US$ billions (as on 1st July, 2013)* |
1130.3 |
1409.8 |
2094.225 |
63.296 |
*NOTE: Data was not available for July 31st, 2013
a. Currency deposit ratio (c) = CURRNS/TCDNS = (1130.3/1409.8) = 0.8017
b. Excess Reserves (ER) = RESBALNS – RESBALREQ = 2030.929
Excess Reserves Ratio (e) = ER/TCDNS = 1.4405
c. Money Multiplier (m) = (1 + c)/(c + rr) = 1.9761
Go to the St. Louis Federal Reserve FRED database, and find the June 2013 data available...
Go to the St. Louis Federal Reserve FRED database, and find data on the M1 Money Stock (M1SL) and the Monetary Base (AMBSL). Calculate the value of the money multiplier June 2013 and June 2008. Based on your answer to part (a), how much would a $100 million open market purchase of securities affect the M1 money supply today and five years ago?
Go to the web site of the Federal Reserve Bank of St. Louis (FRED)( fred .stlouisfed.org ) and find the most recent values for the M1 Money S tock (M1SL) and the S t. Louis Adjusted Monetary Base (AMBSL) . A. Using these data, calculate the value of the money multiplier . B. Assuming that the multiplier is equal to the value computed in part (A), if the monetary base increases by $400millions, by how much will the money supply...
1. If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the money supply is billion. 2. If the required reserve ratio is 10 percent, currency in circulation is $400 billion, checkable deposits are $800 billion, and excess reserves total $0.8 billion, then the currency-deposit ratio is...
6. If reserves in the banking system increase by $100, then checkable deposits will increase by $400 in the simple model of deposit creation when the required reserve ratio is eserve retioKeserves De posi+s 7. If the required reserve ratio is one-third, curreney in circulation is $300 billion, checkable deposits are $900 billion, and there is no excess reserve, then the MI money multiplier is 8. If the required reserve ratio is 10 percent, currency in circulation is $400 billion,...
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