Coins in people's pockets are   A. included in M1, but not in M2.   B. included in M2, but not in M1.   C. included in M1 and M2.   D. excluded from M1 and M2 because people can easily exchange them for Federal Reserve Notes.

Which group in the federal goverment is responsible for counting M1 and M2 money amounts?   A. Department of the Treasury   B. US Mint   C. Internal Revenue Service   D. Federal Reserve

In the U.S., currency in circulation (C) is $1.2 trillion and the monetary base (B) is $3.7 trillion. Assume the reserve-deposit ratio (rr) and the currency-deposit ratio (cr) are both 0.25.   What is the size of bank reserves (R)? What is the money multiplier? What is the money supply? What is the velocity of money if nominal GDP is $17 trillion? If the FOMC increases bank reserves (R) by $0.5 trillion and banks choose to hold all the additional reserves rather than loan them out, what is the new money supply? What is the new money supply if instead banks loan out 50% of the additional new reserves and households deposit all the additional loans? Assume that the velocity of money is constant and real GDP is growing at 1%. Use the numbers in part (a) to answer the next question. If the Fed wishes to keep the price level constant, how much (in dollars) do they need to increase the money supply?

Use the following table to determine the levels of M1 and M2 in the United States.   Money Categories in the United States   Asset Amount (billions of dollars) Currency $84 Demand deposits 81 Money market funds 45 Other checkable deposits 38 Savings deposits 466 Small time deposits 23 Traveler's checks 5     Instructions: Enter your answers as a whole number.   a. Calculate the M1 money supply.        $  billion   b. Calculate the M2 money supply.        $  billion