8. Which of the Federal Reserve’s measures of the monetary aggregates—M1 or M2—is composed of the...
8. Which of the Federal Reserve’s measures of the monetary aggregates—M1 or M2—is composed of the most liquid assets? Which is the larger measure?
Homework Answers
Most liquid asset is M1. Because M1 consists of coins and currencies in circulation, checking deposits & Traveler's check which are most liquid assets.
The larger measure of money aggregate is M2. Because M2 = M1 + Savings deposit + Money Market Mutual Funds + Certificate of Deposits + Other time deposits
Add Answer to:
8. Which of the Federal Reserve’s measures of the monetary
aggregates—M1 or M2—is composed of the...
If monetary aggregates were ranked from most liquid to least liquid, the order would be: O MI and M2. O gold, M1, a...
If monetary aggregates were ranked from most liquid to least liquid, the order would be: O MI and M2. O gold, M1, and M2. O M2, private equity investments, and Mi. stocks and bonds, M2, and Mi.
The Money Aggregates that economists track. The two aggregates of primary importance are M1 and M2,...
The Money Aggregates that economists track. The two aggregates of primary importance are M1 and M2, distinguished by the degree of liquidity of the money categories contained in them. We examined data presenting the change in the size of these aggregates over time. We observed an historic and unprecedented sharp increase in the size of both M1 and M2 in the years 2009-2019. However, the increase was far greater in one of these aggregates than it was in the other...
Which of the following statements about the monetary aggregates is true? OA. 0 B. ° C....
Which of the following statements about the monetary aggregates is true? OA. 0 B. ° C. The growth rates of M1 and M2 always track each other closely. M1 is greater than M2. When the growth rate of M2 increases, the growth rate of M1 must also increase. D. When you transfer funds from your savings account to your checking account, M1 increases and M2 stays the same. Given that, in billions of U.S. dollars, we have 863.2 in currency,...
For the independent-measures t test, which of the following describes the estimated standard error of M1 - M2 (whose sy...
For the independent-measures t test, which of the following describes the estimated standard error of M1 - M2 (whose symbol is )? O The variance across all the data values when both samples are pooled together O A weighted average of the two sample variances (weighted by the sample sizes) O The difference between the standard deviations of the two samples O An estimate of the standard distance between the difference in sample means (M, - M2) and the difference...
9) Which group in the federal govenment is responsible for counting M1 and M2 money amounts?...
9) Which group in the federal govenment is responsible for counting M1 and M2 money amounts? A. Federal Reserve B. Department of the Treasury C. US Mint D. Internal Revenue Service 10) Which problem associated with barter transactions is reduced when people conduct these transactions with money? A. Transaction costs B. Local sales taxes C. Inflation D. Deflation
1.)The ____________ is the sum of currency and reserve deposits, the monetary _________ of the central...
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...
If you were the Federal Reserve chairman, which monetary policy would you advise the federal government...
If you were the Federal Reserve chairman, which monetary policy would you advise the federal government to adopt? Explain why. o Return to the classical gold standard o A gold price targeting policy o A monetary rule (i.e., increase the M2 money supply at a steady rate equal to the long-term real GDP growth rate, and allow interest rates to fluctuate without interference. o Price inflation target, i.e., set a maximum price inflation target, based on the Consumer Price Index...
question: The Federal Reserve’s strategy will require changing the money supply. How does the Federal Reserve...
question:
The Federal Reserve’s strategy will require changing the money
supply. How does the
Federal Reserve do this, and how (and why) does this affect
interest rates?
You walk into the offices of Global Private Bank early in the moming on February 2nd, 2006. You are employed by the bank to market proprietary financial products to moderate to high net worth customers. Going into the break room to grab a cup of coffee, you flip on the TV to CNBC...
The figure below shows two masses m1=4.5 kg and m2=4.1 kg which are connected by a...
The figure below shows two masses m1=4.5 kg and m2=4.1 kg which
are connected by a cable and are in contact with frictionless
surfaces as shown. The ramp makes an angle θ=35° with the
horizontal and m2 is acted on by a force of magnitude F=44 N which
acts up the ramp. What is the tension in the cable? (ANSWER ABOVE
QUESTION, but use figure below)
The figure below shows two masses m1=2.2 kg and m2=4.3 kg which are connected...
Which tool of monetary policy does the Federal Reserve use most often? open-market operations term auctions...
Which tool of monetary policy does the Federal Reserve use most often? open-market operations term auctions changes in reserve requirements changes in the discount rate
If monetary aggregates were ranked from most liquid to least liquid, the order would be: O MI and M2. O gold, M1, and M2. O M2, private equity investments, and Mi. stocks and bonds, M2, and Mi.
Which of the following statements about the monetary aggregates is true? OA. 0 B. ° C. The growth rates of M1 and M2 always track each other closely. M1 is greater than M2. When the growth rate of M2 increases, the growth rate of M1 must also increase. D. When you transfer funds from your savings account to your checking account, M1 increases and M2 stays the same. Given that, in billions of U.S. dollars, we have 863.2 in currency,...
For the independent-measures t test, which of the following describes the estimated standard error of M1 - M2 (whose symbol is )? O The variance across all the data values when both samples are pooled together O A weighted average of the two sample variances (weighted by the sample sizes) O The difference between the standard deviations of the two samples O An estimate of the standard distance between the difference in sample means (M, - M2) and the difference...
question:
The Federal Reserve’s strategy will require changing the money
supply. How does the
Federal Reserve do this, and how (and why) does this affect
interest rates?
You walk into the offices of Global Private Bank early in the moming on February 2nd, 2006. You are employed by the bank to market proprietary financial products to moderate to high net worth customers. Going into the break room to grab a cup of coffee, you flip on the TV to CNBC...
The figure below shows two masses m1=4.5 kg and m2=4.1 kg which
are connected by a cable and are in contact with frictionless
surfaces as shown. The ramp makes an angle θ=35° with the
horizontal and m2 is acted on by a force of magnitude F=44 N which
acts up the ramp. What is the tension in the cable? (ANSWER ABOVE
QUESTION, but use figure below)
The figure below shows two masses m1=2.2 kg and m2=4.3 kg which are connected...
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