Macroeconomics
13th Edition
ISBN: 9781337617390
Author: Roger A. Arnold
Publisher: Cengage Learning
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Question
Chapter 12, Problem 12QP
(a)
To determine
Explain the time deposit.
(b)
To determine
Explain the
(c)
To determine
Explain the money market deposit account.
(d)
To determine
Explain the fractional reserve banking.
(e)
To determine
Explain the reserves
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Explain each of the following types of deposit accounts:
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Chapter 12 Solutions
Macroeconomics
Ch. 12.2 - Prob. 1STCh. 12.2 - Prob. 2STCh. 12.2 - Prob. 3STCh. 12.3 - Prob. 1STCh. 12.3 - Prob. 2STCh. 12.3 - Prob. 3STCh. 12.4 - Prob. 1STCh. 12.4 - Prob. 2STCh. 12.4 - Prob. 3STCh. 12 - How much money did you make last year? What is...
Ch. 12 - Prob. 2QPCh. 12 - Prob. 3QPCh. 12 - Prob. 4QPCh. 12 - Prob. 5QPCh. 12 - Prob. 6QPCh. 12 - Prob. 7QPCh. 12 - Prob. 8QPCh. 12 - Prob. 9QPCh. 12 - Prob. 10QPCh. 12 - Prob. 11QPCh. 12 - Prob. 12QPCh. 12 - Prob. 13QPCh. 12 - Prob. 14QPCh. 12 - Prob. 15QPCh. 12 - Prob. 16QPCh. 12 - Prob. 17QPCh. 12 - Prob. 1WNGCh. 12 - Prob. 2WNGCh. 12 - Prob. 3WNGCh. 12 - Prob. 4WNGCh. 12 - Prob. 5WNGCh. 12 - Prob. 6WNGCh. 12 - Prob. 7WNGCh. 12 - Prob. 8WNGCh. 12 - Prob. 9WNGCh. 12 - Prob. 10WNG
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- Bank mobilizes the savings of people. True False.arrow_forwardFor the following list of items, indicate if they are in M1, M2, or neither: a. Your $5,000 line of credit on your Bank of America card b. $50 dollars’ worth of traveler’s checks you have not used yet c. $1 in quarters in your pocket d. $1200 in your checking account e. $2000 you have in a money market accountarrow_forwardWhat a bank owes to someone else is considered part of the bank’s ________. Select one: a. liabilities b. assets c. net worth d. excess reservesarrow_forward
- Distinguish between legally required reserves and excess reserves.arrow_forwardUse the information below to answer the following questions. Currency in circulation Credit card balances Bank loans Savings accounts Demaed deposits Stock holdings Money market mutual funds Small denomination time deposits Money market deposit 100 800 3000 1000 300 2000 2000 1000 750 jaccounts Other checkable deposits 1000 Mi- m2 If Sam took $100 out of his savings account and put it in his checking account m2 would (increase decrease, or not change) and mi would (increase, decrease, or not change) You have $2000 in your checking account and a $1000 loan from the bank For you the checking account is an and for the bank it is ain For you the loan is aln and for the bank the loan is alnarrow_forwardConsider the following data. Value (S billions) 657 Item Currency Savings and money market deposit accounts Small-denomination time deposits 3.094 1,546 Traveler's checks outside banks and thrifts Noninstitution money market mutual funds Institution-only money market mutual funds Transaction deposits 12 863 236 937 Calculate M1. $ billion.arrow_forward
- Mr. Bill Smith lives in Dayton Ohio and always deposits money into a checking account in a bank nearby. Please calculate the money creation in the U.S. banking system with required reserve ratio at 0.25 in each of the following cases: (a) Bill’s parents wired him $100,000 from Germany. (b) Bill won $100,000 cash from a casino in another state. (c) Bill found $100,000 worth of collectable coins underground at his house. (d) Bill got a $100,000 check which is issued in a U.S. bank from his aunt as gift.arrow_forwardMoney supplyarrow_forwardWhat Is a Commercial Bank?arrow_forward
- A bank has outstanding loans of $7,500, reserves of $2,500, and deposit liabilities of $10,000. If the required reserve ratio is 10%, this bank: A. Is holding excess reserves of $1,000 B. Is in a position to make a new loan for $1,500 C. Is in a position to make a new loan for $2,500 D. Has less reserves than requiredarrow_forwardWrite a post that explains why money is not the universal measure of all value.arrow_forwardRequired reserves with a bank equal A) Total reserves plus excess reserves B) Excess reserves minus demand deposits C) Total reserves minues excess reserves D) Demand deposits plus savings accountarrow_forward
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