Answered: The fastest growing money supply since…

The fastest growing money supply since 1970 has been ___________. Group of answer choices A. M1 B. M2 C. M3 D. M1 AND M3 WHICH HAVE GROWN EQUALLY FAST

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

See similar textbooks

Related questions

Q: lowing example digita money? Select one: а. Rice b. Ethereum

A: Digital money, or digital currency, is any form of money or payment that exists only in electronic…

Q: n increase in the interest paid on excess reserves will encourage banks to hold _______ excess…

A: Excess Reserves are the reserves that banks hold over and above the legal requirement. It is the…

Q: Give three specific examples each of M1, M2, and M3. For instance, under M1 is coins and currency…

A: Money: It refers to the medium of exchange that helps people to buy goods and services. The money is…

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

A: "Since you have asked a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Vault cash is included in which of the following measures of the money supply of the United States?…

A: Money supply refers to the amount of total money that is in circulation in the economy at a…

Q: Vault cash is included in which of the following measures of the money supply of the United States?…

A: It can be defined as the physical form of money which encompasses coins and notes these physical…

Q: Given an initial deposit of $200, and assuming that required reserve ratio equals 5%, and that bank…

A: Money supply refers to the total quantity or stock of money circulating within an economy at a given…

Q: Q19 The money supply is controlled by the Select one: a. South African Reserve Bank b. President of…

A: Money supply is the amount of money which is circulating in the economy. It is very important for…

Q: If the Federal Reserve decide to “create its own digital currency,” which of the following measures…

A: answer is given below

Q: The M1 definition of money includes O currency held by individuals and businesses, money market…

A: Liquidity means that how easily can the investment be converted into cash. Cash is the most liquid…

Q: Explain the M1 and M2 approaches to measuring the supply of money.

A: Anything which is used as a medium of exchange, a unit of account, and a store of value, is called…

Q: Which of the following is not included in M1? coins credit cards paper money O checking deposits

A: M1 money supply is the narrow form of money that only include cash and liquidity Monetary…

Q: 4. Describe what is the black money.

A: Money is used as a medium of exchange for buying and selling of goods in an economy. It also acts as…

Q: Calculate M1, M2 and M3 using the following information: Items Billion $ Negotiable certificates 304…

A: The total inventory of money circulating in an financial system is the money supply. This entails…

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: Can I ask how do you calculate M1 and M2 ? Thanks

A: Money supply refers to the amount of currency in the form of coins, paper notes, or demand deposits…

Q: Gold is included in which of the following measures of the money supply of the United States? Select…

A: The question is asking about the classification of gold in the measures of money supply in the…

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

A: The hypothetical situation with the money market is given below.…

Q: Real-Time Data Analysis Exercise* *Real-time data provided by Federal Reserve Economic Data (FRED),…

A: M1 money supply incorporates those monies that are very liquid like cash, checkable (demand)…

Q: 43. Which of the following does not explain what currently backs the money supply in the United…

A: The money supply is the stock of money with people during the year . Supplier of money are the…

Q: Question 1: If required reserve ratio is 20%, what is the amount of initial deposit needed to create…

A: The percentage of deposits that banks must retain in reserve and refrain from lending out is known…

Q: Jone currently has $6,000 in her savings account and $2,000 in her checking account at the local…

A: In this question we have to find out the the change in M1 and M2 with the help of the above…

Q: Small-denomination time deposits are Select one: a. considered part of near money. b. the same as…

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

Q: Explanation it correctly

A: The Federal Reserve is the central bank of the country. It is the bank that owns the control of the…

Q: Real-Time Data Analysis Exercise* *Real-time data provided by Federal Reserve Economic Data (FRED),…

A: Here we are given the M1 and M2 data (which are the alternative measures of money supply) for the…

Q: When the central bank issues more currency the money supply effects are M1 increases M2…

A: The central bank is the sole authority which can issue legal currency of a country. Each country may…

Q: Vault cash is included in which of the following measures of the money supply of the United States?…

A: Money supply refers to the amount of total money that is in circulation in the economy at a…

Q: According to the Simple Deposit creation model if the Fed conducts an open market sale of $400…

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

Q: The table to the rightshaus hypothetical values in bilices of dollars Use the lette and M2 money…

A: M1 and M2 money using the table given :

Q: if the reverse requirements is 8% and a banker's new deposit are$50.what is the M1 money supply

A: According to the question the value of Reverse requirements = 8% or 0.08 Also the New deposit =$50…

Q: Using the information below compute the M2 money supply. Category Currency and coin held by the…

A: M2 money supply describes the measure of money which includes cash, checking deposits, savings…

Q: Assume that Mo = 100. Further we assume that the c = 0.25, and r = 0.10. Compute the money supply…

A: Answer;

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

A: The gold standard is a monetary system in which the standard economic unit of account is based on a…

Q: Currency (Coins and Paper Money), Demand Deposits and DD’s offered by other institutions are…

A: Money supply refers to the holdings of liquid assets by banks and public. The measures of money…

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

A: M1 and M2 are measures of the money supply that are used to quantify the amount of money in…

Q: [Checkbox multiple options may be required] A central bank controls the money supply via: Issuing…

A: A central bank is an institution responsible for overseeing a country's monetary system, regulating…

Q: Vault cash is included in which of the following measures of the money supply of the United States?…

A: Money supply refers to the amount of total money that is in circulation in the economy at a…

Q: In 2010 M1 was $2 trillion Currency was $850 Million Travelers checks were $20 Billion Demand…

A: Given, M1 : $2 TrillionCurrency : $850 MillionTravelers Checks : $20 BillionDemand Deposits : $1030…

Q: Vault cash is included in which of the following measures of the money supply of the United States?…

A: Money supply basically refers to the amount of total money that is in circulation in the economy at…

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…

Q: typing answer with explanation and conclusion All else the same, the money supply will increase if…

A: Money supply can be defined as the total number of money circulated within an economy at a…

Concept explainers

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.

Question

The fastest growing money supply since 1970 has been ___________.
Group of answer choices

A. M1

B. M2

C. M3

D. M1 AND M3 WHICH HAVE GROWN EQUALLY FAST

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Introduction

VIEW

Explanation

VIEW

Conclusion

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.

Similar questions

Coins in people's pockets are A. included in M1, but not in M2. B. included in M2, but not in M1. C. included in M1 and M2. D. excluded from M1 and M2 because people can easily exchange them for Federal Reserve Notes.
n the table below, the money supply, defined by M3, is equal to ........ Currency held by the non-bank public ($ billion) Current deposits at banks ($, billion) Other deposits at banks and other deposits held by other deposit -taking institutions ($, billion) 60 240 1500 Select one: a. 1200 billion b. 1800 billion c. 1500 billion d. 1740 billion
N7 2. Show 3 rounds of deposits, starting with a $2000 deposit into a checking account at bank A. Assume the required reserve rate is 5% . a. Show the effect at bank A b. Show the effect at bank B C. Show the effect at bank C d. What will be the total increase to the money supply?
Traveler's checks are included in... M1 and M2 money supply neither M1 nor M2 money supply M1 money supply only M2 money supply only
The money multiplier declined significantly during the period 1930-1933 and also during the recent financial crisis of 2008-2010. Yet the M1 money supply decreased by 25% in the Depression period but increased by more than 20% during the recent financial crisis. What explains the difference in outcomes? A. The excess reserves ratio increased rapidly during the recent financial crisis. B. There was a minimal increase in the currency ratio during the recent financial crisis. C. There was a significant increase in the monetary base during the recent financial crisis. OD. The overall level of deposit expansion decreased during the recent financial crisis.
Suppose Alice withdraws $10,000 from her savings account to purchase shares in a money market mutual fund. Alice's action will cause _______ in the M1 money supply and _______ in the M2 money supply, everything else held constant. Select one: an increase; no change an increase; a decrease a decrease; no change a decrease; an increase
1.Explain the different forms of money in today's world A. token moneyB. broad moneyC.money substitutesD.m1, m2, m3 and m4
50. Commercial banks maintain their reserves in the form of cash in their bank vaults and deposits at the Bank of Canada. deposits at other commercial banks that are immediately accessible. cash in their bank vaults. cash and foreign currency at the Bank of Canada. gold in their bank vaults.
H)
Pls help with below homework.
Give typing answer with explanation and conclusion
12. Which of the following is not included in M1? a. Currency b. Demand deposits c. Savings deposits d. Traveler's checks 13. Rashad and Brianna decide to go on a vacation, As a result, they withdraw $5,000 from their savings account to purchase $5,000 worth of traveler's checks. As a result of these changes, a. MI increases by $5,000 and M2 decreases by $5,000. b. MI increases by $5,000 and M2 stays the same. c. MI and M2 stay the same. d. M1 decreases by $5,000 and M2 increases by $5,000. 14. When the Fed decreases the discount rate, banks will a. borrow more from the Fed and lend more to the public. The money supply increases. b. borrow more from the Fed and lend less to the public. The money supply decreases. c. borrow less from the Fed and lend more to the public. The money supply increases. d. borrow less from the Fed and lend less to the public. The money supply decreases. 15. The price index was 105 in Year 1 and 111 in Year 2. What was the inflation rate? a. 5.7 percent b.…