Table 1 below shows the different categories of money that make up Country A’s money supply.   See image attached. 1. Calculate the value of M1 2. Calculate the value of M2 3. Calculate the value of long term deposits include M3 4. Which one of the components of M3 is the largest?

Q: In the United States today, which of the following items are money? Question content area bottom

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Q: 10. Which of the following is included in M2 but not included in M1? demand…

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Q: If M3 is $200 million and M1 is $88 million Find the value of net time deposit with banks

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Q: Calculate M1 if M3 is $20,000 and net time deposit with banks is $17,000

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Q: Which of the following is not counted in​ M2?   A. U.S. Savings account balances   B. U.S. Checking…

A: M2 = M1 + saving deposits with banks M1 = Coins and currency in circulation +checking account…

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Q: Calculate the value of M2 given that the M1 measure of money supply is $85,000 and saving deposit…

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Q: Determine whether each of the following is included in both M1 and M2 or M2 only:               a.…

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Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.