Which of the following would be classified in the M1 category of the money supply? O demand deposits O certificates of deposit savings deposits O money market deposit
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- M1 and M2 are two definitions of money supply. Determine if the items listed are included in the money supply under each of these definitions, and place them in the appropriate category. Look at imagesIf deposits in the banking system are $540, while the reserve ratio is 0.2 and the currency to deposit ratio is 0.9, then a) calculate the total demand for high powered money. b) calculate the money multiplierThe terms are measures or individual components of the money supply. Place these items from largest to smallest in terms of dollar value, specifically considering the money supply of the United States. Largest Smallest M2 balances in savings accounts currency M1 travelers checks
- If deposits in the banking system are $540, while the reserve ratio is 0.2 and the currency to deposit ratio is 0.09, then: a) Calculate the total demand for high powered money.Using the information below compute the M2 money supply. The M2 money supply is $ Category Currency and coin held by the public Checking account balances Traveler's checks Savings account balances Small denomination time deposits Money market deposit accounts in banks Noninstitutional money market fund shares Amount $500 $1,500 $10 $2,300 $5,000 $1,000 $2,000One limitation of using money as a store of value is that: a) money needs to be divisible and portable b) money loses value over time due to inflation c) money is not readily acceptable everywhere in return for goods and services d) money is not very liquid
- Which of the following is not part of the M2 money supply? Retail money market mutual funds Small denomination time deposits (CD’s) Checkable or Demand deposits Savings deposits Commercial paperThe Federal Reserve reported the following information about the money supply of the United States in October 2023: Monetary Series Reserves of depository institutions Currency in circulation Total checkable deposits Total savings deposits Small time deposits Retail Money Market Mutual Funds Monetary Base M1 Money Supply M2 Money Supply Value ($billions) $2,243.0 $4,981.8 $990.6 $1,654.2 $5,519.5 $20,725.6 a. Use the information in the table to find the values of Reserves of depository institutions, Total Savings deposits, and the M1 Money Supply.Using the information below compute the M2 money supply. The M2 money supply is $ Using the information below compute the M2 money supply. Category Currency and coin held by the public Checking account balances Traveler's checks Savings account balances Small denomination time deposits Money market deposit accounts in banks Noninstitutional money market fund shares The M2 money supply is $ Amount $200 $1,900 $10 $3,400 $5,000 $1,000 $2,000