Macroeconomics
13th Edition
ISBN: 9780134735696
Author: PARKIN, Michael
Publisher: Pearson,
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Chapter 25, Problem 2SPA
To determine
Estimate the value of M1 and M2 money supply.
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In May 2017, currency held by individuals and businesses was $1,469 billion; traveler's checks were $2 billion; checkable deposits owned by individuals and businesses were $2,034 billion; savings deposits were $8,958 billion; time deposits were $355 billion; and money market funds and other deposits were $1,746 billion. Calculate M1 and M2 in May 2017.
In Maldonia in 2019, checkable deposits owned by individuals and businesses were $1,635 billion; M1 was $2,857 billion;
currency held by individuals and businesses was $1,219 billion; money market funds and other deposits were $631 billion; M2 was $11,424; and savings deposits
were $7,406 billion.
Calculate traveler's checks in circulation in Maldonia in 2019. Calculate small time deposits in Maldonia in 2019.
In Maldonia in 2019, traveler's checks in circulation were $
Small time deposits in Maldonia in 2019 were $ billion.
billion.
In Maldonia in 2019, traveler's checks in circulation were $8 billion; checkable deposits owned by individuals and businesses were $651 billion; M1 was $1,326 billion; savings deposits were $3,279 billion; small time deposits were $803; and
money market funds and other deposits were $761 billion.
Calculate currency held by individuals and businesses in Maldonia in 2019. Calculate M2 in Maldonia in 2019.
In Maldonia in 2019, currency held by individuals and businesses was $ billion.
M2 in Maldonia in 2019 was $ billion.
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Chapter 25 Solutions
Macroeconomics
Ch. 25.1 - Prob. 1RQCh. 25.1 - Prob. 2RQCh. 25.1 - Prob. 3RQCh. 25.1 - Prob. 4RQCh. 25.1 - Prob. 5RQCh. 25.2 - Prob. 1RQCh. 25.2 - Prob. 2RQCh. 25.2 - Prob. 3RQCh. 25.2 - Prob. 4RQCh. 25.2 - Prob. 5RQ
Ch. 25.3 - Prob. 1RQCh. 25.3 - Prob. 2RQCh. 25.3 - Prob. 3RQCh. 25.3 - Prob. 4RQCh. 25.3 - Prob. 5RQCh. 25.4 - Prob. 1RQCh. 25.4 - Prob. 2RQCh. 25.4 - Prob. 3RQCh. 25.5 - Prob. 1RQCh. 25.5 - Prob. 2RQCh. 25.5 - Prob. 3RQCh. 25.5 - Prob. 4RQCh. 25.5 - Prob. 5RQCh. 25.6 - Prob. 1RQCh. 25.6 - Prob. 2RQCh. 25.6 - Prob. 3RQCh. 25.6 - Prob. 4RQCh. 25 - Prob. 1SPACh. 25 - Prob. 2SPACh. 25 - Prob. 3SPACh. 25 - Prob. 4SPACh. 25 - Prob. 5SPACh. 25 - Prob. 6SPACh. 25 - Prob. 7SPACh. 25 - Prob. 8SPACh. 25 - Prob. 9SPACh. 25 - Prob. 10APACh. 25 - Prob. 11APACh. 25 - Prob. 12APACh. 25 - Prob. 13APACh. 25 - Prob. 14APACh. 25 - Prob. 15APACh. 25 - Prob. 16APACh. 25 - Prob. 17APACh. 25 - Prob. 18APACh. 25 - Prob. 19APACh. 25 - Prob. 20APACh. 25 - Prob. 21APACh. 25 - Prob. 22APACh. 25 - Prob. 23APACh. 25 - Prob. 24APACh. 25 - Prob. 25APACh. 25 - Prob. 26APACh. 25 - Prob. 27APA
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- K In Maldonia in 2019, M1 was $2,523 billion; currency held by individuals and businesses was $1,122 bilion; traveler's checks in circulation were $5 billion; savings deposits were $6,857 billion; smaltime deposits were $568; and money market funds and other deposits were $652 bilion Calculate checkable deposits owned by individuals and businesses in Maldonia in 2019. Calculate M2 in Maldonia in 2019. GLEED In Maldonia in 2010, checkable deposts owned by individuals and businesses were bision M2 in Maldonia in 2010 was billionarrow_forwardIn July 2013, M1 was $2,539 billion; M2 was $10,710 billion; check-able deposits owned by individuals and businesses were $1,414 billion; small time deposits were $556 billion; and money market funds and other deposits were $665 billion. Calculate currency held by individuals and businesses and traveler's check in July 2013, and calculate savings deposits. In July 2013, currency held by individuals and businesses and traveler's checks were $ _____ billion. Savings deposits in July 2013 were $_____ billion.arrow_forward2. In May 2017, currency held by individuals and businesses was $1,469 billion; traveler's checks were $2 billion; checkable deposits owned by individuals and businesses were $2,034 billion; savings deposits were $8,958 billion; time depos- its were $355 billion; and money market funds and other deposits were $1,746 billion. Calculate M1 and M2 in May 2017.arrow_forward
- In December 2000, currency was $340 billion, travelers checks were $4 billion; checkable deposits owned by individuals and businesses were $450 billion, saving deposits were $1,900 billion, time deposits were $1,000 billion; and money market funds were $900 billion. What was the M1 in December 2000?arrow_forwardM1 and M2 are two measures of money supply. M1 includes only the most liquid forms of money like currency, checking account deposits, and traveler’s checks. M2 includes all of M1 along with some less liquid forms of money like savings accounts and money market deposits. Suppose you transfer $2,000 from your mutual fund account to your checking account. What is the immediate impact of this transfer on M1 and M2 as per the economy?arrow_forwardIn May 2014, currency held by individuals and businesses was $67 billion, chequable deposits owned by individuals were $244 billion and owned by businesses were $361 billion; non-chequable personal deposits were $238 billion; non-chequable business deposits were $39 billion; and term deposits and other deposits were $312 billion. Calculate M1 and M2 in May 2014. M1 in May 2014 is $ M2 in May 2014 is $ billion. billion. V Screenshot 2024-... What are the components of money today? | The components of money today are A. currency inside banks and outside banks B. bank reserves and deposits at banks and other depository institutions C. currency outside banks and deposits at banks and other depository institutions D. cheques and credit cards Screenshot 2024-0... i M2 consists of plus A. fiat money; debts, chequable deposits, and mutual funds B. regular expenses; mortgages and individual retirement accounts C. M1; personal non-chequable deposits and non-personal non-chequable deposits D. M1;…arrow_forward
- When currency is equal to $100 billion and reserves are equal to $200 billion, and we know that the money multiplier is equal to 2.5, then the money supply will be equal toarrow_forward1. In May 2017, currency held by individuals and businesses was $1,469 billion; traveler's checks were $2 billion; checkable deposits owned by individuals and businesses were $2,034 billion; savings deposits were $8,958 billion; time deposits were $355 billion; and money market funds and other deposits were $1,746 billion. Calculate M1 and M2 in May 2017. 2. The FOMC sells $20 million of securities to Wells Fargo. Enter the transactions that take place to show the changes in the following balance sheets. Federal Reserve Bank of New York Assets (millions) Liabilities (millions) Wells Fargo Assets (millions) Liabilities (millions)arrow_forwardIn an economy, savings deposits are $10,000 billion, currency is $1,500 billion, checkable deposits are $4,000 billion, money market funds and other deposits are $1,000 billion, and small time deposits are $200 billion. What are the values of M1 and M2? M1 is _______ and M2 is _______. A. $16,700 billion; $5,500 billion B. $5,500 billion; $16,700 billion C. $15,500 billion; $6,700 billion D. $1,500 billion; $20,700 billionarrow_forward
- Which of the following is included in M2 but not in M1? a. Currency b. Demand deposits c. Savings deposits d. Traveler's checarrow_forwardThe table below shows the components of M1 and M2 in the U.S. Use the table to calculate Total M2. Round to the third decimal place. Components of M1 and M2 in the U.S. $ trillions Currency $3 Individual market mutual fund balances $0.764 Demand deposits and other checking accounts $3.1 Savings accounts $8.475 Traveler's checks $0.004 Time deposits $0.492arrow_forwardSuppose a small country has the following monies in circulation: Cash/currency: $5 million Checkable deposits: $14 million Small-denomination time deposits: $15 million Savings deposits: $20 million Money market deposit accounts: $25 million Share in retail money market mutual funds: $11 million Calculate the value of M1 and M2. Now suppose bank customers transfer $10 million from their savings accounts to their checking accounts. What will happen to the value of M1 and M2 (i.e., will they rise, fall, or stay the same)?arrow_forward
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