Which two of the following fifinancial institutions offer checkable deposits included within the M 1 money supply: mutual fund companies; insurance companies; commercial banks; securities fifi rms; thrift institutions? Which of the following is not included in either M1 or M2: currency held by the public; checkable deposits; money market mutual fund balances; small (less than $100,000) time deposits; currency held by banks; savings deposits.

Assume that the following asset values (in millions of dollars) exist in Ironmania: Category Value Federal Reserve Notes in circulation $800 Money market mutual funds (MMMFS) held by individuals 400 Corporate bonds Iron ore deposits Currency in commercial banks Savings deposits, including money market deposit accounts (MMDAS) Checkable deposits Small-denominated (less than $100,000) time deposits 300 50 110 140 1600 100 Coins in circulation 40 a. What is M1 in Ironmania? $ million b. What is M2 in Ironmania? $ million

Currency held in the vault of a Bank like Wells Fargo is: a) counted as part of both M1 and M2 b) not counted as part of the money supply c) counted as part of M1 but not M2 d) counted as part of M2 but not M1

State all the components of the M2 money supply (you may not list M1 as a component, rather you must list the components of M1 individually.)

Assume the following data describe the condition of the banking system:   Checking deposits  $800B Cash held by public    $200B Savings/CD deposits $1000B Credit card balance  $200B Reserve requirement     0.10   How large is the M2?  How much bank reserve is required in the system?  How much M2 will increase if banks lend additional $10B?

The table to the right shows hypothetical values, in billions of dollars. Use the table to calculate the M1 and M2 money supply for each year. (Enter your responses rounded to the nearest dollar.) Total M1 Total M2 2009 2010 2011 2012 ・・・ A. Currency B. Money market mutual fund shares C. Saving account deposits D. Money market deposit accounts E. Demand and checkable deposits Small-denomination time deposits F. G. Traveler's checks H. 3-month Treasury bills 2009 920 678 5,300 2010 2011 2012 930 932 937 683 681 690 840 3 1,990 5,580 5,768 5,905 1,210 1,241 1,270 1,325 1,010 982 871 1,133 1,576 3 2 1 2,378 2,440 2,506 990 1,003

Assume no change in currency holdings as deposits change. A banking system with target reserve ratio 0.20 starts with no excess reserves. If the central bank purchases $210 in government bonds from commercial banks, what will be the ultimate change in money supply (when banks return to having no excess reserves)? Round to two decimal places and do not enter the $ sign. If your answer is $6.114, enter 6.11. If your answer is $6.115, enter 6.12. If appropriate, remember to enter the - sign.

Use the following table to determine the levels of M1 and M2 in the United States.   Money Categories in the United States   Asset Amount (billions of dollars) Currency $84 Demand deposits 81 Money market funds 45 Other checkable deposits 38 Savings deposits 466 Small time deposits 23 Traveler's checks 5     Instructions: Enter your answers as a whole number.   a. Calculate the M1 money supply.        $  billion   b. Calculate the M2 money supply.        $  billion

Kk.290.

Compare the use of open market operations, discounting, and changes in reserve requirements to control the money supply