Exercice 2 Fiduciary Demand Units of Deposits refundable Term Negotiable deposits deposits with a currency debt money market with < 3 securities duration of months' funds with an < 2 years notice initial maturity <= 2 years September 1330.8 8621.3 1080.2 2427.9 618.6 0.3 2020 1) Define the monetary aggregates M1 and M2? Calculate the value of these two aggregates in September 2020?

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Economics
Exercice 2
Fiduciary
Demand
Term
Units of
Negotiable
Deposits
refundable
currency
deposits
deposits
money
debt
with a
with < 3
market
securities
duration of
months'
funds
with an
< 2 years
notice
initial
maturity <=
2 years
September
1330.8
8621.3
1080.2
2427.9
618.6
0.3
2020
1) Define the monetary aggregates M1 and M2? Calculate the value of these two aggregates in
September 2020?
Bank B has 10,000€ of excess reserves and decides to grant loans until these reserves are exhausted in
order to reserves until they are exhausted, in order to develop its activity. Knowing that the that the ECB
imposes a reserve requirement of 5%, that bank A has a market share of 15% of bank deposits of bank
deposits of 15% and that banknotes represent 10% of the money supply (in the sense of M1),
2) Calculate the total amount of credits granted by B and the amounts of the different
leakage it must face.
Transcribed Image Text:Economics Exercice 2 Fiduciary Demand Term Units of Negotiable Deposits refundable currency deposits deposits money debt with a with < 3 market securities duration of months' funds with an < 2 years notice initial maturity <= 2 years September 1330.8 8621.3 1080.2 2427.9 618.6 0.3 2020 1) Define the monetary aggregates M1 and M2? Calculate the value of these two aggregates in September 2020? Bank B has 10,000€ of excess reserves and decides to grant loans until these reserves are exhausted in order to reserves until they are exhausted, in order to develop its activity. Knowing that the that the ECB imposes a reserve requirement of 5%, that bank A has a market share of 15% of bank deposits of bank deposits of 15% and that banknotes represent 10% of the money supply (in the sense of M1), 2) Calculate the total amount of credits granted by B and the amounts of the different leakage it must face.
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