Checkable Bank Deposits $2 Trillion Savings Bank Deposits $7.5 Trillion Currency in Circulation $1.5 Trillion Travelers Checks $0.5 Trillion Certificates of Deposit (CDs) $0.5 Trillion. What is the value of M2 that is not part of M1? $8 Trillion $4 Trillion O $9.5 Trillion O $12 Trillion O $11 Trillion

Checkable Bank Deposits $2 Trillion Savings Bank Deposits $7.5 Trillion Currency in Circulation $1.5 Trillion Travelers Checks $0.5 Trillion Certificates of Deposit (CDs) $0.5 Trillion. What is the value of M2 that is not part of M1? $8 Trillion $4 Trillion O $9.5 Trillion O $12 Trillion O $11 Trillion

Macroeconomics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506756

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter13: Money And The Banking System

Section: Chapter Questions

Problem 18CQ

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Similar questions

If you take 100 out of your piggy bank and deposit it in your checking account, how did M1 change? Did M2 change?
10. Which of the following is included in M2 but not included in M1? demand deposits currency held outside banks savings accounts other checkable deposits
2. Determine whether each of the following is included in both M1 and M2 or M2 only: a. a Connecticut quarter b. a savings account at a local savings bank c. a share draft account at a credit union d. money market deposit accounts e. American Express travelers' checks
QUESTIONS 1 Jane Doe has the following assets: $100 in her wallet $800 in her demand deposit account $1,000 in her savings account A $50 traveler’s check from her last trip to China A $300 outstanding credit card bill A car worth $5,000 A house worth $200,000 Identify which of the assets are included in M1, which are in M2, or neither M1 nor M2. ii) Suppose she takes $400 for her demand deposit account and deposits it in her savings account. What is the change in M1 and M2? b) Many savers choose to hold their funds at a financial intermediary instead of lending them directly in financial markets. Explain TWO (2) reasons why financial…
6. Which of the following would not be counted as part of M1? demand deposits traveler’s check money market accounts currency
9 If the interest rate................... opportunity cost of holding money decreases, and the quantity demanded of money increases; decreases decreases; increases £0000 increases; also increases does not change; does not change 10 If the total deposits-on-demand in Bank A total $500 mil and the required reserve ratio is 2.5 percent, then required reserves at Bank A equal more than 1,300,000,000 equal to 13,000,000 less than 13,000,000 more than 13,000,000
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2. Suppose your bank lowers its minimum balance requirement by $500. So you take $500 out of your checking account and invest in Money Market Mutual Funds. What is the overall effect on M1 and M2? a. M1 falls by $500, M2 rises by $500. b. M1 is unchanged, M2 is unchanged. c. M1 falls by $500, M2 is unchanged. d. M1 is unchanged, M2 rises by $500.
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Question 17 Which of the following is included in M2, but not in M1? o checking account deposits O cash and coins O time deposits O traveler's checks
13. Rashad and Brianna decide to go on a vacation. As a result, they withdraw $5,000 from their savings account to purchase $5,000 worth of traveler's checks. As a result of these changes, a. M1 increases by $5,000 and M2 decreases by $5,000. b. M1 increases by $5,000 and M2 stays the same. c. M1 and M2 stay the same. d. M1 decreases by $5,000 and M2 increases by $5,000. will
By how much has the following US money aggregates grown between January 2018 (i.e. the month-end amount for Jan. 2018) and September 2022 (i.e. the month-end amount for Sept. 2022)? Tip: You need to download monthly data for both M1 and M2 money aggregates in the US. a. US M1 = b. US M2 = % %