ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN: 9780190931919
Author: NEWNAN
Publisher: Oxford University Press
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Item Dollars | In Billions |
Checkable Deposits | $600 |
Small Time Deposits | $700 |
Currency | $500 |
Money-Market Mutual Funds Held by Businesses | $1,200 |
Savings Deposits and Money-Market Deposit Accounts | $2,500 |
Money-Market Mutual Funds Held by Individuals | $800 |
What is the size of the M1 money supply?
Question 4 options:
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$800
|
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$1,900
|
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$1,100
|
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$2,600
|
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- which of the following is included in M1? a. traveler's check b. money market deposit accounts c. saving accounts d. money market mutual funds e. none of the abovearrow_forwardIf a bank currently has $10,000 Excess Reserves, $20,000 Required Reserves, and $30,000 Actual Reserves. What is the maximum amount of loans the bank could make? Multiple Choice $10,000 - up to its Excess Reserves $20,000 - up to its Required Reserves Under the above conditions, the bank could not make any additional loans $30,000 - up to its Actual Reservesarrow_forwardThe economy of Lykesville currently has $15,000 worth of currency in circulation, $20,000 worth of checkable deposits, $1,300 worth of traveler's checks, and $44,000 in savings accounts. Calculate M1:arrow_forward
- 24. Assuming the required reserve ratio is 10%, how much can this bank lend? a) $200,000 b) $300,000 c) $400,000 d) $550,000 e) $3,000,000arrow_forwardQUESTION 24 LAST CHANCE BANK OF TOMBSTONE BALANCE SHEET ASSETS LIABILITIES & NET WORTH $900,000 $100,000 $300,000 $3,700,000 $2.000.000 cash in the vault: demand deposits: $5,000,000 deposits at Fed US treasury bonds: loans: Building: capital stock: $2,000,000 TOTALS: $7,000,000 TOTALS: $7,000,000 24. Given a reserve requirement ratio of 10%, what will be the maximum effect on quantity of money in circulation of a Federal Reserve sale of $100,000 worth of government securities directly to a bank? an increase of $100,000 a decrease of $1,000,000 a decrease of $100,000 an increase of $1,000,000arrow_forwardIf a customer came into the bank to withdraw more from their demand deposits than the bank currently has on hand in vault cash, what are the sources for getting the cash to cover the withdraws(Check ALL That Apply)? Print New Money Borrow from another Bank Borrow from the Federal Reserve Convert(Liquidate) Loansarrow_forward
- For this bank what would be the level of excess reserves if the required reserve ratio were 20%? A) 0 B) $300,000 C) $900,000 D) $1,000,000 E) There would be a shortfall in required reserves of $100,000arrow_forward32arrow_forwardThe balance sheet of Nationa Bank is shown below (assume a legal reserve ratio of 10%): Assets Liabilities & Net Worth Reserves 90,000 Checkable Deposits 500,000 Cash 20,000 Stock Shares 270,000 Loans 125,000 Securities 235,000 Property 300,000 1. Based on the balance sheet above, how much money can the bank create? 2. If the bank creates the full amount possible, how much money can the banking system create as a result? 3. If the Federal Reserve raises the reserve ratio to 20%, how much will the bank and banking system be able to create based on the new reserve ratio?arrow_forward
- Total reserves $55 billion Transactions deposits: $600 billion Cash held by public: $400 billion Bonds held by public: $400 billion Stocks held by public: $140 billion Gross domestic product: $8 trillion Interest rate: 6 percent Required reserve ratio: 0.10 How large is the money supply (M1)? How much excess reserves are there? What is the money multiplier? What is the available lending capacity?arrow_forward3-4 pleasearrow_forwardWhen the reserve requirement changes, which of the following will change for an individual bank? Multiple Choice a.) transactions account balances and lending capacity b.) required reserves, excess reserves, and lending capacity c.) transactions account balances, total reserves, and excess reserves d.) total reserves, required reserves, and excess reservesarrow_forward
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