Refer to table below. Suppose that the Fed had decided to set the U.S. money supply in December 1932 and in December 1933 at the same value as in December 1930.   a. Assuming that the values of currency held by the public and the reserve-deposit ratio had remained as given in the table, what should the values of bank reserves be to reach the stated target for the U.S. money supply?   Instruction: enter all responses rounded to two decimal places     Money Supply Currency held by public Reserve-deposit ratio Actual Bank reserves Needed Bank reserves December 1930 $44.1 billion $3.85 billion 0.075 $3.31 billion $3.31 billion December 1932 $44.1 billion $4.82 billion 0.109 $3.18 billion  billion December 1933 $44.1 billion $4.85 billion 0.133 $3.45 billion  billion   b. In order to accomplish this objective, the Fed would have had to conduct open market  purchases   to increase bank reserves by $ _______ billion in 1932 and $_________  billion in 1934.

Which of the following would cause the money supply curve to shift to the left? Select one: a. A decrease in the real GDP. b. An open market purchase of bonds by the central bank. c. An open market sale of bonds by the central bank. d. A decrease in the target for overnight rate.

TF Qu. 123 Gold backs the U.S. money supply.... Gold backs the U.S. money supply. True or False True False

Please show equation: If the required reserve ratio (RRR) in the U.S. is 40 percent and Allen gathers $10,000 from cash sales and deposit the money into his U.S. National Bank checking account, then the change in the U.S. money supply should be     Answers: A.  No change   B.  A $4,000 increase   C.  A $15,000 increase   D.  A $25,000 increase

Could you add more information regarding the below statement? "The Federal Reserve System plays a massive role in not only the economy of the united states but alos in the global economy. The US dollar is one of the most popular and well recognized forms of currency all around the world, making it the basis for many financial transactions and trades. This popularity and standardization in regards to the dollar makes it one of if not the most important currency in the world, whose value has implications on nearly every aspect of trade, consumers, and even other countries wellbeing. Because of this, the fed, who has the ability to influence the value of the dollar and the economy, is likely the most important financial institution of the world, because of it's ability to severely impact both positively and negatively the united states economy and the world economy. With the recent inflation, I do think that the fed should take some action to mitigate the risk of any catastrophic…

1. Suppose velocity is 3, real output is 9000, and the price level is 1.5. What is the level of real money balances in this economy? 2. Considered the following data for an economy. Currency in circulation held by the public: CU = 400 dollars; Monetary Base: B = 800 dollars; currency/deposit ratio: cu = 0.25. What is the value of reserves in this economy? 3. Considered the following data for an economy. Currency in circulation held by the public: CU = 400 dollars; Monetary Base: B = 800 dollars; currency/deposit ratio: cu = 0.25. What is the value of the money multiplier in this economy?     Please answer the three questions above (and highlight the answer if you can). Please explain the math/reasoning used

With full explanation

Scenario 29-1 The Monetary Policy of Jaune is controlled by the country's central bank known as the Bank of Jaune. The local unit of currency is the Jaunian dollar. Aggregate banking statistics show that collectively the banks of Jaune hold $240 million of required reserves, $60 million of excess reserves, have issued $6,000 million of deposits, and hold $480 million of Jaunian Treasury bonds. Jaunians prefer to use only demand deposits and so all money is on deposit at the bank. Refer to Scenario 29-1. Assume that banks desire to continue holding the same ratio of excess reserves to deposits. What is the reserve requirement and the reserve ratio for Jaunian Banks? O 5 percent, 8 percent 4 percent, 8 percent 4 percent, 5 percent 5 percent, 4 percent

Indicate which of the functions of money (a medium of exchange, a unit of account, and a store of value) each of the following performs in the U.S. economy. Check all that apply. Plastic credit card Picasso painting Mexican peso Demand deposit Plastic credit card Picasso painting Mexican peso Medium of Exchange Unit of Account Given your answers to the previous task, indicate whether each of the following is considered money in the U.S. economy. Money Yes No Demand deposit 0 0 0 0 Store of Value 0 0 0 0

6. a) UK currency is a commercial bank liability b) UK currency is a Bank of England liability c) UK currency is a central bank asset 9. The neutrality of money refers to the idea that a) a change in money supply has no impact on output over any time period b) a change in money supply has no short run impact on output c) the real quantity of money is constant in the long term