2.If you use money as a unit of account, you would be |
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The balance sheet above shows the financial situation for the Jamestown National Bank. The central bank has set a required reserve ratio of 10%. If the bank does not sell any of its securities, what is the maximum amount of additional loans the bank in Jamestown can undertake? |
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1. What is the value of M1 if the following is true? Coin and Currency: $80...
Using the information below compute the M1 money supply. Category Currency and coin held by the public Checking account balances Traveler's checks Savings account balances Small denomination time deposits Money market deposit accounts in banks Noninstitutional money market fund shares Amount $100 $1,000 $10 $3,100 $5,000 $1,000 $2,000 The M1 money supply is equal to: $
A bank with $200 million in transaction deposits keeps $20 million in cash in the bank vault, $10 million in deposits at the Fed, and $5 million in government securities in the bank vault. Its total reserves equal 1) $10 million. 2) $35 million. 3) $30 million. 4) $20 million. All of the following are included in M1 EXCEPT 1) checking account balances. 2) traveler's checks. 3) money market mutual fund shares. O 4) coin and currency.
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...
Suppose that the public wishes to hold $0.35 in pocket money (currency and coin) and $0.25 in time and savings deposits. Suppose that banks wish to hold $0.20 for each new dollar of transaction money received. Suppose that $0.05 finds its way outside of the domestic banking system. Suppose the reserve requirement on transaction deposits is 3 percent and that on time and savings deposits is 4%. (20 points) a. What is the size of the transaction deposit multiplier? Make...
1.)The ____________ is the sum of currency and reserve deposits, the monetary _________ of the central bank A.)money stock; assets B.)money stock; liabilities C.)monetary base; liabilities D.)monetary base; assets 2.)Time deposits are ______ liquid than savings deposits and typically earn a _________ interest rate than savings deposits. A.)less; higher B.)more; higher C.)more; lower D.)less; lower 3.)If banks must hold $2 in reserves for each $10 in deposits, and the public decides to hold $3 in currency for each $10 in...
1) Suppose the Fed's required reserve ratio (REQ) is 20%. Further suppose that the Fed buys $100 million of U.S. Treasury securities from a dealer, Mary Jones, who deposits the check, which is drawn on the Fed, in her bank. This deposit increases her bank's reserve account (∆R) with the Fed by $100 million as well as its demand deposits, its total reserves, and the overall level of M1. What is the money multiplier?1) Suppose the Fed's required reserve ratio...
Question 9 (1 point) Which of the following is not considered a function of money? Question 9 options: it facilitates exchange it acts as a means of payment it can be held and exchanged for future goods and services it allows banks to lend out funds all of the above are functions of money Question 10 (1 point) Suppose that I find out from a L.L. Bean catalogue that a sweater costs $45. In this case, money is serving as...
Question 28 (1 point) Classify the following three scenarios by the role which money plays. The answers will either be medium of exchange, unit of account, or store of value. (1) Darnell deposits $1,200 in his savings account. (2) Rosa buys a new pair of jeans for $90. (3) Bernard compares the prices of the latest iPhone and the latest Android phone and determines that the iPhone is more expensive. Store of value, unit of account, medium of exchange Unit...
answer every single picture QUESTION 5 Suppose James transfers $500 from his checking account to his savings account. As a result of this action, OM1 stays the same and M2 falls. M1 falls and M2 stays the same. OBoth M1 and M2 fall. OBoth M1 and M2 stay the same. We were unable to transcribe this image1 poi QUESTION 7 Suppose the required reserve ratio is 25%. Assuming that banks hold no excess reserves and consumers hold no cash, this...
THERE ARE 20 total QUESTIONS PLEASE ANSWER ALL OF THEM QUESTION 1 One way to reduce the recessionary gap through fiscal policy is to O increase government purchases. increase taxes. O decrease transfer payments. decrease the MPC QUESTION 2 Which of the following is true of open-market operations? It involves the purchase and sale of government securities by the central bank. O it involves the purchase and sale of stocks and bonds by private banks. It involves measures taken by...