demand deposits what is demand deposits
Homework Answers
Demand deposits are funds held in an account with a bank or other financial institutions, and these funds can be withdrawn by the account holder without prior warning and at any point of time. Example of demand deposits are : checking or savings account. Funds from these accounts can be withdrawn using an ATM or online banking at any point of time.
People can write checks against a. demand deposits and money market mutual funds b. demand deposits...
People can write checks against a. demand deposits and money market mutual funds b. demand deposits but not money market mutual funds c. money market mutual funds but not demand deposits d. neither demand deposits nor money market mutual funds
Asset Amount in $Billions Small time deposits 780 Large time deposits 1,700 Demand deposits 450 Other...
Asset Amount in $Billions Small time deposits 780 Large time deposits 1,700 Demand deposits 450 Other checkable deposits 370 Savings deposits 4950 Traveler's checks Money market mutual funds 740 Currency 880 Miscellaneous categories of 50 M2 What is the value of M1 in billions of dollars? 1705 2485 6295 7075
QUESTION 46 Time deposits Demand deposits and other checkable deposits Savings deposits Money market mutual funds...
QUESTION 46 Time deposits Demand deposits and other checkable deposits Savings deposits Money market mutual funds Traveler's checks $600 billion $400 billion $800 billion $700 billion $30 billion Currency $250 billion Other categories in M2 $20 billion Given the information above, what are the values of M1 and M2? . M1 = $650 billion, M2 - $2,830 billion b.M1 - 5400 billion, M2 = $3,080 billion. CM1 = $680 billion, M2-S2,800 billion d. Mi - 5680 billion, M2 = $3,200...
Consider a bank that has assets of 150, capital of 50 and demand deposits of 100....
Consider a bank that has assets of 150, capital of 50 and demand deposits of 100. Remember that deposits are liabilities of a bank. (i)Set up the bank’s balance sheet. What is the leverage and capital ratio? (ii) Now suppose that the value of a bank assets fall by 50. What is the new leverage and capital ratio? (ii) Why might this worry an economist?
Consider an economy where 80 percent of the money is held as demand deposits and the...
Consider an economy where 80 percent of the money is held as demand deposits and the rest as currency. Banks hold 10 percent of deposits as reserves. The monetary base is 500 billion pesos. (a) Calculate the money multiplier (b) Calculate the money supply
Savings deposits = $2221.5b Demand Deposits = $1880.6b Required reserve ratio = 9% Currency in circulation...
Savings deposits = $2221.5b Demand Deposits = $1880.6b Required reserve ratio = 9% Currency in circulation = $1100.0b Vault Cash = $91.5b Household money market mutual fund = $1753.3b Certificates of deposit (value< $100,000) = $2450.0b Banking system deposits with the Fed = $208.2b Household money market deposits accounts = $1588b Certificates of deposit (value > $100,000) = $4827.6b Institutional money market accounts = $3864.3b Treasury Bills = $458.3b a. Calculate the MB. b. Calculate m1 as illustrated in practice...
Ml equals currency + demand deposits + A)nothing else B)othere checkable deposits. C)traveler's checks + other checkable deposits. D)traveler's checks + other checkable deposits -+ savings de...
Ml equals currency + demand deposits + A)nothing else B)othere checkable deposits. C)traveler's checks + other checkable deposits. D)traveler's checks + other checkable deposits -+ savings deposits 2. If you deposit $100 of currency into a demand deposit at a bank, this action by itself A)does not change the money supply. B)increases the money supply. C)decreases the money supply. D)has an indeterminate effect on the money supply. 3. The manager of the bank where you work tells you that your...
If the banking system has demand deposits of $100,000, total reserves equal to $20,000, and a...
If the banking system has demand deposits of $100,000, total reserves equal to $20,000, and a required reserve ratio of 20 percent, the banking system can increase the volume of loans by Multiple Choice $O. $20,000. $80,000 $100,000O
ounchPad. In the nation of Wiknam, people hold $1,000 of currency and $4,000 of demand deposits in the only bank
LounchPad. In the nation of Wiknam, people hold $1,000 of currency and $4,000 of demand deposits in the only bank, Wikbank. The reserve-deposit ratio is 0.25.a. What are the money supply, the monetary base, and the money multiplier?b. Assume that Wikbank is a simple bank: it takes in deposits, makes loans, and has no capital. Show Wikbank's balance sheet. What value of loans does the bank have outstanding? c. Wiknam's central bank wants to increase the money supply by 10 percent. Should it...
A bank has excess reserves of $10,000 and demand deposits of $50,000 when the required reserve...
A bank has excess reserves of $10,000 and demand deposits of $50,000 when the required reserve ratio is 20 percent. If the reserve ratio is raised to 25 percent, this bank can lend a maximum of: $5000. $7500. $10,000. $25000.
Asset Amount in $Billions Small time deposits 780 Large time deposits 1,700 Demand deposits 450 Other checkable deposits 370 Savings deposits 4950 Traveler's checks Money market mutual funds 740 Currency 880 Miscellaneous categories of 50 M2 What is the value of M1 in billions of dollars? 1705 2485 6295 7075
QUESTION 46 Time deposits Demand deposits and other checkable deposits Savings deposits Money market mutual funds Traveler's checks $600 billion $400 billion $800 billion $700 billion $30 billion Currency $250 billion Other categories in M2 $20 billion Given the information above, what are the values of M1 and M2? . M1 = $650 billion, M2 - $2,830 billion b.M1 - 5400 billion, M2 = $3,080 billion. CM1 = $680 billion, M2-S2,800 billion d. Mi - 5680 billion, M2 = $3,200...
Ml equals currency + demand deposits + A)nothing else B)othere checkable deposits. C)traveler's checks + other checkable deposits. D)traveler's checks + other checkable deposits -+ savings deposits 2. If you deposit $100 of currency into a demand deposit at a bank, this action by itself A)does not change the money supply. B)increases the money supply. C)decreases the money supply. D)has an indeterminate effect on the money supply. 3. The manager of the bank where you work tells you that your...
If the banking system has demand deposits of $100,000, total reserves equal to $20,000, and a required reserve ratio of 20 percent, the banking system can increase the volume of loans by Multiple Choice $O. $20,000. $80,000 $100,000O
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