[Related to the Solved Problem] Consider the following data:CurrencyBank reservesCheckable depositsTime depositsExcess reserves$150 billion$300 billion$800 billion$1,800 billion$40 billionCalculate the values for the currency-to-deposit ratio, the ratio of total reserves to deposits, the monetary base, the M1 money multiplier, and the M1 money supply.The currency-to-deposit ratio is(Enter your response rounded to two decimal places.)

Currency-to-deposit ratioThis ratio shows the proportion of currency in circulation compared to the…

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Economics: Private and Public Choice (MindTap Course List)

16th Edition

ISBN:9781305506725

Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson

Chapter13: Money And The Banking System

Section: Chapter Questions

Problem 18CQ

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Consider the following data (all values are in billions of dollars): Currency Checkable deposits Bank reserves C/D R/D June 1930 $3.681 $21.612 $3.227 Monetary Base Money Multiplier M1 Money Supply Calculate the values for each period for the currency-to-deposit ratio, the ratio of total reserves to deposits, the monetary base, the money multiplier, and the M1 money supply. (Enter your responses rounded to two decimal places; the monetary base and the M1 money supply are in billions of dollars.) June 1931 $3.995 $19.888 $3.307 1930 June 1932 $4.959 $15.49 $2.829 1931 1932
[Related to the Solved Problem] Consider the following data: Currency Checkable deposits Bank reserves $1,150 billion $900 billion $900 billion a. Calculate the values for the currency-to-deposit ratio, the ratio of total reserves to deposits, the monetary base, the M1 money multiplier, and the M1 money supply. The currency-to-deposit ratio is 1.28. (Enter your response rounded to two decimal places.) The ratio of total reserves to deposits is (Enter your response as an integer.)
[Related to the Solved Problem] Consider the following data: Currency Checkable deposits Bank reserves $1,150 billion $900 billion $900 billion a. Calculate the values for the currency-to-deposit ratio, the ratio of total reserves to deposits, the monetary base, the M1 money multiplier, and the M1 money supply. The currency-to-deposit ratio is . (Enter your response rounded to two decimal places.)
Suppose that a country computes its monetary aggregates in the same way as the Federal Reserve. The relevant table on the central bank website reports the following values. a. b. C. Currency Treasury securities Savings deposits Other checkable deposits Large time deposits Bank reserves Retail money market mutual funds Demand deposits Small time deposits $751 $1,041 $642 $241 $802 $167 $105 $524 $361 What is the value of M1? (Give $ value.) What is the value of the monetary base? (Give $ value.) Suppose the interest rate on government bonds is 2.7%. What is the government's seigniorage revenue? (Give a $ value; ignore the costs of printing the currency, etc., and assume the central bank does not pay interest on reserves.)
Which of the following is included in M2 but not in M1? a. Currency b. Demand deposits c. Savings deposits d. Traveler's chec
Use the following table to determine the levels of M1 and M2 In the United States. Money Categories in the United States Asset Currency Demand deposits Money market funds other checkable deposits Savings deposits Small time deposits Traveler's checks Instructions: Enter your answers as a whole number. a. Calculate the M1 money supply. $ billion b. Calculate the M2 money supply. Amount (billions of dollars) $76 75 42 35 442 20 3 billion
Consider the following monetary data: 2000 2008 Monetary base ($bn) 8.5 8.7 Reserve deposit ratio (%) 20 15 Currency deposit ratio (%) 13. 23 a. Calculate the change in the money supply between 2000-2008 if the currency deposit ratio changes as shown, but the reserve deposit ratio stays constant. b. Calculate the change in the money supply between 2000-2008 if the reserve deposit ratio changes as shown, but the currency deposit ratio stays constant. c. Which of the two changes is more responsible for the overall change in the money supply from 2000-2008? Why?
Suppose the currency-to-deposit ratio is 0.25, the excess reserve-to-deposit ratio is 0.05, and the required reserve ratio is 0.05. Which will have a larger impact on the money multiplier: a rise of 0.05 in the currency ratio or in the excess reserve ratio? Instructions: Enter your response rounded to two decimal places. Initially, the money multiplier is m=[ If the currency-to-deposit ratio rises to 0.3, the multiplier will be m-[ If, instead, the excess reserve-to-deposit ratio rises by 0.05, the money multiplier will be m-| So, multiplier falls by more with the increase in the (Click to currency-to-deposit ratio excess reserve-to-deposit ratio
6. . Assume that the reserve-deposit ratio is 0.09 and the currency-deposit ratio is 0.15. What is the value of the money multiplier? 45417 047917 04 05.7368
Use the information in the table below to answer the following two questions. Items Billions of $ Savings deposits 7000 Money market 700 mutual funds M2 13700 Checking deposits 2750 Small time deposits 750 How much is M1? billion Part 2 (1.5 pts) Now, calculate the amount of currency in billions of dollars in the economy from the given information (assume no traveler's checks). $ billion
Suppose you are the only currency holder in an economy, and you have $220 in currency. What would the money supply be in the following scenarios? [Hint: Use the money multiplier for Fractional Reserve Banking] [Blank 1] You put your $220 under your pillow[Blank 2] You put your $220 in a full reserve banking system[Blank 3] You put your $220 in a fractional reserve banking system where the reserve ratio is 10%[Blank 4] You put your $220 in a fractional reserve banking system where the reserve ratio is 17%
Table 1 below shows the different categories of money that make up Country A’s money supply. Use this information to answer Q.3.1.1 to Q.3.1.4. Show all calculations and relevant formulae Type of deposit/aggregate Amount (Rbn) Bank notes and coins 57 Short term deposits 82 Cheques and deposits 155 30-day deposits 28 60-day deposits 17 M3 432 Which one of the components of M3 is the largest?

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