Question

a country has no travelor checks and it has the data given below. what is the value gor checking account balances.

29. Another country has a monetary growth rate of 8% in a year when the economic growth rate is 4%. The velocity of money is always 4. What is the inflation rate? 30. A country has no travelers' checks and it has the data given below. What is the value for checking account balances? Vault err = 5% Currency issued = 1400 cash= 400 rrr = 10% bank reserves with the Fed = 1600 Total deposits in banks = 10,000 budget deficit = 300 cr=? govt Note: M1 = {(1 + cr)/(rrr + err + cr)} x MB

Answer 1

Here Currency is Circulation = Currency issued + vault Cash

Monedeny Outpeed growth growth = 8% = = 4% = PY A 0.08 0.04 p . MU mv so Here velocity es connat p= 0.08MV 0.04 y Inflation is = 0.02 = 0.021V - y = 2 % = 0.10 Try 101 Currency = 1400 cash = 400 rrr = 10% . Bonee reserves = 1600, Tolol Depasits 5.16101 budget deficit = 300 jerr = 54. = 0.01, cr = ? = % - Tooro - MB = C+ R = 1400 + 1600 MB = 30cb C = 6 = 1400 M, {(1+0.14)/(0.10 +0.05+0.14)x 3600 = Tolu x 3000 =11,793 0.29 - Mi = currency in circulatin + checcable Weperty B + favela check. 11793 = 1400 + 10,800 + travelay chelle tҷо 1179] so = 11800 t trauelen cheer travelar's chere = 11893-12800 travellan chele =- 2 /