Question

1. What is the value of M1 if the following is true? Coin and Currency: $80...

1. What is the value of M1 if the following is true?

Coin and Currency: $80 million
Demand Deposits: $190 million
Savings Deposits: $400 million
Traveler's Checks: $10 million
Time Deposits: $800 million

$280 million
$590 million
$1,200 million
$1,390 million
$1,480 million

2.If you use money as a unit of account, you would be

searching the Internet for a deal on a new computer.
returning a sweater to the department store.
buying a new radio.
withdrawing $500 from your savings account.
putting money in a savings bond.

3.

Assets

Liabilities

Actual Reserves

$60,000

Demand Deposits

$200,000

Securities

$130,000

Loan

$10,000

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?

$180,000
$60,000
$40,000
$20,000
$6,000
0 0
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