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

A: The total amount of money in an economy is measured using different metrics. To be considered as…

Q: Calculate the value of currency with public if M1 is $1,55,612 , demand deposits is 68,000 and other…

A: The information being given is as follows:- M1 = $1,55,612  Demand deposit = 68,000 Other deposit…

Q: Economists have several ways of defining what they mean by the "supply of money." Which of the…

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Q: 2. Determine whether each of the following is included in both M1 and M2 or M2 only: a. a…

A: M1 and M2 refer to different measures of the money supply in an economy:M1: M1 is a narrow measure…

Q: The table below shows the components of M1 and M2 in the U.S. Use the table to calculate Total M2.…

A: To calculate the total M2, we'll add up each component provided in the table. Here's the detailed…

Q: Use the following table to determine the levels of M1 and M2 in the United States.   Money…

A: M1 and M2 are money supply which are also part of narrow money.  M1 includes currency, demand…

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

A: M1 is narrow money. It involves liquid assets  like cash, demand deposits, check able deposits,…

Q: If an individual moves money from a savings account to a checking account M1 increases and M2…

A: Introduction: A checking account is a deposit account that lets you withdraw and deposit in a bank.…

Q: 2000 2010 2020 Currency in 517 870 1718 circulation Checkable 582 826 2297 deposits Excess Reserves…

A: The amount of currency, coins, cash, or balances in the bank that are being in circulation is known…

Q: The table to the right shows hypothetical values, in billions of dollars. Use the table to calculate…

A: Money supply refers to the total amount of currency and easily accessible funds within an economy,…

Q: 1. If the U.S. Treasury deposits income tax receipts into its account at the Federal Reserve, then…

A: In the federal reserve system, US treasury is the separate entity as it regulates receipts and…

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

A: The information being given to us is as follows:- M3 = $200 million M1 = $88 million We need to…

Q: In May 2017, currency held by individuals and businesses was $1,469 billion; traveler's checks were…

A: The measure that depicts currency and other instruments that are liquid in the economy of a country…

Q: Let's assume that in a hypothetical economy currency in circulation is $600 billion, the amount of…

A: There are various measurements of money supply such as M1 , M2 ,M3 and M4 .  But most liquid…

Q: Which of the following characteristics is true of paper currency? O It is the only type of money…

A: In an economy, money is exchanged in different forms such as paper money, coins, pr other monetary…

Q: Table 1 Amount (Rbn) Type of deposit/aggregate 57 Bank notes and coins 82 Short term deposits 155…

A: Individuals and banks' liquid assets make up the money supply. Coin, currency, and demand deposits…

Q: Answer the questions below from the data in table (all figures are in billions of dollars). Total…

A: “Since you have posted multiple questions with multiple sub parts, we will provide the solution only…

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…

Q: Which of the following would not be counted as part of M1?   demand deposits traveler’s check…

A: ANSWER STEP-1 The following would not be counted as part of M1 is Ans:- option (C) money market…

Q: Considering the money supply, which of the following is included in M2 but not included in M1? A)…

A: The total amount of money held by the public at a particular time is referred to as money supply. It…

Q: According to table below (all figures are in billions of dollars) Currency held outside banks $ 800…

A: Given: Currency held outside banks = $ 800Demand Deposits = $1000Traveler's Checks = $100Other…

Q: Which of the following is not part of the M2 money supply? currency in circulation.   credit card…

A: M1 consists of checkable deposits , cash  and currency in circulation and travellers checks.  M2…

Q: ​Are currency and checkable deposits owned by the government (U.S. Treasury) and the Federal Reserve…

A: Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: 6. Assume that the reserve-deposit ratio is 0.09, and the currency-deposit ratio is a 15. What is…

A: here we calculate and choose the value of money multiplier by using the given reserve ratio so the…

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

A: The data presented in the question is:- M1 measure of money supply = $85,000 Savings deposit with…

Q: Which of the following is included in M2 but not in M1?     a. Currency     b. Demand deposits…

A: M1 is narrow money. It involves liquid assets  like cash, demand deposits, check able deposits,…

Q: Small-denomination time deposits are included in which of the following measures of the money supply…

A: A time deposit is the deposit in a financial institution which has a specific maturity period. The…

Q: In an economy, the M2 measure of money supply is $88,000 and M1 is $66,000 We have to calculate…

A: The information being given is:- M2 = $88,000 M1 = $66,000 Saving deposit with post office Savings…

Q: Use the following table to determine the levels of M1 and M2 In the United State Money Categories in…

A: M1 and M2 are money supply which are also part of narrow money.  M1 includes currency, demand…

Q: If you have kept savings in a retail money market fund, and you withdraw funds that are then…

A: There are four measures of money supply M1 , M2 ,M3 & M4 . First two are called narrow money and…

Q: The net time deposit with banks is $400 million and the M1 component of money supply is $870 million…

A: M3 is a measure of money supply that includes time deposits , money market funds and liquid assets…

Q: The net time deposit with banks is $400 million and the M1 component of money supply is $870 million…

A: The GIVEN information is as follows:- Net time deposit with banks = $400 million M1 = $870 million…

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

A: Basics:- M1 and M3 are money supply measures where :- M3 = M1 + net time deposits with banks

Q: L consists of M2 plus all other products that may be transferred into money. Lis the most liquid…

A: One definition of a liquid asset is readily convertible into money. Cash is the most significant…

Q: The economy of Lykesville currently has $15,000 worth of currency in circulation, $20,000 worth of…

A: The currency in circulation = $15000 Checkable deposits = $20000 Traveler’s checks = $1300 Amount in…

Q: If you have the following data The monetary Items Value in M. Currency in circulation, 675…

A: Money supply M1 The money supply is the sum of the currency in circulation and total deposits Thus,…

Q: The table shows the amounts held as the various components of M1 and M2. Item Non-chequable…

A: The supply of money includes the circulation of currency, demand deposits and other deposits of…

Q: Calculate M2 if in the Economy is M1 is $10,000 million and Savings deposit with post office is…

A: The information being given is:- M1 = $10,000 Savings deposit at post office = $7700  We have to…

Q: Currency Demand deposits Money market funds other checkable deposits Savings deposits Small time…

A: In billion of dollars   Currency 89   Demand deposits 86   Money market Funds 47   other…

Q: State all the components of the M2 money supply (you may not list M1 as a component, rather you must…

A: Money supply is measured through the different measures such as M1, M2 and M3. The M1 is narrow…

Q: In the following data table, calculate the amount of excess reserves and the monetary base and then…

A: The monetary base is predominately responsible for money supply. The higher the value of monetary…

Q: John withdraws $ 100 from his checking account and deposits it in his savings account. What will be…

A: C stands for the money that is in circulation. Since john is firstly withdrawing and then depositing…

Q: Asset Amount (billions of dollars) Currency $84 Demand deposits 81 Money market funds 45 Other…

A: The money that is supplied in an economy by the central bank is known as the money supply. It can be…

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.