9.  Which of the following would not be included as part of M2?   demand deposits money market accounts checking accounts none of the above

1. What is money? Discuss the characteristics of money as medium of exchange, unit of account, store of value, and means of deferred payment. 2. Define M1 and M2 3. Describe the money multiplier and explain how it works.  Give examples for each one.

1. Which of these is a basic goal of the Federal Reserve System?   a. export promotion   b. zero interest rates   c. a balanced federal budget   d. full employment

9.     How would you incorporate security considerations/costs into the transactions demand model? What would this imply for the demand for currency in a relatively insecure urban environment (a) compared with a relatively safe one, (b) when owner-identified smart cards become available? Do these factors affect the demand for demand deposits? How would the proportion of currency to demand deposits be affected in these cases? 10.      Can the transactions demand model be used to explain why financial innovations in recent decades have reduced the transactions demand for M1? 11.      Are transactions demand models useless, as Sprenkle (1969) argued? If they are, how would you explain the demand for M1 or just for demand deposits in the economy?  

Debate what is a future of crypto currencies? why it might be a good or bad idea for banks to hold 100% of their deposits? What role is there for banks in a future world of crypto currencies like bitcoins? what is the future of crypto currencies?

55)Using the M2 definition of Money, M2 = Category Amount Currency and coin held by the public $1,000 Checking account balances $2,000 Traveler's checks $50 Savings Account balances $4,000 Small denomination time deposits (CD) $3,000 Money market deposit accounts in banks (MMDA) $1,500 Money Market Mutual Fund Shares  (MMMF) $2,500 Bitcoins $1,000 Select one: a. 11,000 b. 14,050 c. 15,050 d. 13,050

14. With reference to the Federal Reserve's M1 and M2 measures of the money supply, please indicate whether funds held in each of the forms listed below are included only in M1, only in M2, in both M1 and M2, or in neither M1 nor M2. (a) Money market mutual fund shares. (b) Bank reserves. ге (c) Demand deposits. (d) Small (under $100,000) certificates of deposit. (e) Currency in circulation.

4. Explain what is the fractional reserve banking system and how it is different from a 100% reserve banking system?