The BSP control the volume of money in circulation using the monetary tools. Please give one and explain.

Q: Describe in detail the measures of money supply used by Reserve Bank of India

A: Reserve Bank of India is the central bank of India which is established in year 1925 under the…

Q: The money supply includes all of the following EXCEPT a.Metal coins b.paper currency c.lines of…

A: The money is considered as the highly liquid asset which is used as medium of exchange for…

Q: The monetary base of Moneyland is $500 million. The current-deposit ratio (is 0.2 and reserve…

A: Monetary base = $500 million Cr = 0.2 rr = 0.2  Money Multiplier =  1+crrr+cr+erwhere  cr = currency…

Q: If nominal GDP is $1,000 and the money supply is $250 then money velocity is

A: Given money supply = 250 $ Nominal GDP = 1000 $ Velocity of money = Nominal GDp / Money supply =…

Q: With an example, illustrate how the multiple deposit contraction process influences money supply.

A: Deposit Contraction - If banks have extra reserves, they can lend more and expand the money supply.…

Q: Given below is data of an economy: Bank reserves = 40 billion, Demand deposits = 350 billion, Term…

A: Here we calculate the following terms by using the given data so the calculation of the following…

Q: The banking system currently has $100 billion of reserves, none of which are excess. People hold…

A: Reserve ratio is the proportion of deposits that banks have to hold with themselves instead of…

Q: Why is the use of the discount rate less effective in influencing money supply than the statutory…

A: Monetary policy is a set of measures that a country's central bank can use to encourage long-term…

Q: Currency held by the nonbank public, CU $1,575.9 billion Bank reserves, RES $2,022.5 billion…

A:

Q: Suppose there was a banking crisis. The money supply would shrink by the greatest amount if the…

A: Money supply = Monetary base * Money multiplier => Δ(Money supply) = Δ(Monetary base) * Money…

Q: Elaborate on the TWO (2) main components of money based on the narrowest definition of money.

A: Narrowest definition money or M1 refers to the sum of currency held with the public, demand deposits…

Q: Money and Banking Economics: Evaluate the following statement: "The Federal Reserve can perfectly…

A: Federal Reserve is the monetary authority of the country which decides the monetary policy of that…

Q: Outline three (3) tools that can be used by the central bank to reduce the money supply

A: The important monetary policies that are used by the central bank of nation to control the money…

Q: Why do people demand for money? Discuss the different motives of holding money.

A: The demand for money is termed as to how many assets a person wishes to hold in the form of money…

Q: Does the money supply "Cash held by public" get included in the calculation of the federal reserve…

A: The reserve requirement is the amount that the commercial banks have to keep aside out of total…

Q: The central bank of a country directly influences the components of money supply through…

A: The central bank can control the money supply by using the full reserve banking system or fractional…

Q: Discuss how the bank of England can control the Money supply and interest rates and then reflect on…

A: The description of how banks produce money makes it seem that the size of a country's money supply…

Q: Calculate the Money Multiplier, given the following informatio- rrr = .14 %3D Total Deposits: $7800…

A: Calculate the reserve ratio  = Total Reserves / Total deposits = $2000 /$7800 = 28%

Q: ………… theory of money highlights the important role played by “authorities” in the origins and…

A: Money is a medium of exchange and store of value plus unit of account.

Q: The central bank has most control over a. Monetary base b. M1 c. M2

A: Meaning of Financial Assets: The term financial assets refer to the situation, under which these…

Q: If currency ratio is 0.10, required reserves ratio is 0.1, excess reserves ratio is 0.05, the Fed…

A: The reserve ratio is the mandatory ratio which is the fixed fraction of total deposits that a bank…

Q: The Central banks' tools to control the money supply include the discount rate, and interest…

A: If the money supply has to be decreased Central bank would increase discount or interest rate as…

Q: summary explaining the four main tools the Fed uses to change the money supply

A: The actions by authorities(Fed) of a country, to either expand or tighten the economy and its money…

Q: In the United States, which of the following systems was established to be in charge of money?Choose…

A: The United States of America's central bank is the Federal Reserve which is also known as the Fed.…

Q: dentifying what variable is affected in the money market and providing a detailed explanation as to…

A: The above graph indicates the market situation which is affected by the interest rate in the…

Q: If deposits in the banking system are $540, while the reserve ratio is 0.2 and the currency to…

A: The sum of banking reserves and the currency in circulation referred to as high-powered money.

Q: Bank X has a required reserve ratio of 0.2, total reserves are $70 million, and deposits are $200…

A: The actual reserves which are generally kept in excess in a bank for the given amount of the…

Q: The Federal Reserve a. was created in 1896. b. is part of the executive branch of government. c.…

A: Federal reserve (Fed), the central bank of the US, was founded in 1913, is autonomous and…

Q: During recessions, banks typically chose to hold more excess reserves relative to their deposits.…

A: Monetary Policy: It refers to the decision of the central bank regarding the amount of money supply…

Q: The central bank of a country directly influences the components of money supply through…

A: The central bank can control the money supply by using the full reserve banking system or frctional…

Q: In Vacanada, the monetary base is $20 billion, total desired bank reserves are $1 billion, and total…

A: When measuring a country's money supply, currency and other liquid assets are included. Cash and…

Q: With respect to controlling the money supply,the law requires the Fed to take orders froma. the…

A: Money supply means the supply of money into an economy. It is more supplied in the case of recession…

Q: _______ is the most liquid measure of money supply

A: There are in total 4 measures of money supply which are:- M1 , M2 , M3 and M4   These are divided…

Q: Which of the following component of money supply is most liquid? Checking accounts Savings accounts…

A: Meaning of Macroeconomics: The term macroeconomics refers to the situation of economic and…

Q: differences between the "transaction demand" for money and the "asset demand" for money

A: Transaction demand for money and asset demand for money are two components of demand for money.

Q: If the required reserve ratio is 8 percent, currency in circulation is $350 billion, checkable…

A: Given: Required reserve ratio=rr= 8% Currency in circulation = $350 billion checkable deposits =…

Q: in a 100% reserve banking system, banks: a- can increase the money supply. b- can decrease the…

A: The central bank can control the money supply by using the full reserve banking system or fractional…

Q: In Vacanada, the monetary base is $20 billion, total desired bank reserves are $1 billion, and total…

A: Values given are:- Monetary base = 20 billion Total desired bank reserves = 1 billion Total bank…

Q: If a bank has $50,000 in deposits, $20,000 in total reserves, and the required reserve ratio the…

A: Given Total deposits = 50000 Total reserves = 20000 Reserve ratio = 15 %

Q: Can explain the money creation process and calculate size of the money multiplier by using the…

A: The money creation process refers to a process where the money supply in an economy is increased or…

Q: If the head of the Central Bank of Japan wanted to expand the supply of money in Japan in 2009,…

A: The economy performs according to business cycles. Business cycle indicates that there will be an…