Answered: The main difference between M1 and M2…

The main difference between M1 and M2 money supply measures is that M2 includes A) Saving deposits of small denomination B) Traveler’s checks C) Checking deposits D) Coins and currency

Macroeconomics

13th Edition

ISBN:9781337617390

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section: Chapter Questions

Problem 6WNG

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The main difference between M1 and M2 money supply measures is that M2 includes A) Saving deposits of small denomination B) Traveler’s checks C) Checking deposits D) Coins and currency

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Considering the money supply, which of the following is included in M2 but not included in M1? A) currency held by the public B) demand deposits (i.e., checking account balances) C) traveler's checks D) savings accounts
Which of the following characteristics is true of paper currency?O It is the only type of money included in M1.O It includes demand deposits.O It is a type of commodity.O It is the biggest component of M3.O It is fiat money.
Determine the size of the M1 money supply using the following information. Currency plus Traveler’s checks $25 million Negotiable CDs $10 million Demand deposits $13 million Other checkable deposits $12 million
Economists have several ways of defining what they mean by the "supply of money." Which of the following is common to both the M1 and M2 definitions of the money supply? A. Small time deposits B. Checkable deposits C. Savings deposits D. Money market mutual funds
In defining money as M1, economists exclude time deposits because: the intrinsic value of time deposits is nil. the purchasing power of time deposits is much less stable than that of checkable deposits and currency. they are not directly or immediately a medium of exchange. they are not recognized by the Federal government as legal tender.
3 Which of the following statements is /are incorrect in explaining the difference between M1, M2, and M3 a) M3 consists of M2 plus a long-term deposit and is more of a comprehensive measure that includes funds held as a unit of account b) M1 consists of cash in circulation outside the monetary sector plus demand deposit c) M2 consists of M1 plus medium-term deposit, and medium-term deposit is regarded as quasi money d) M2 consists of M1 plus short-term deposit, and medium-term deposit is regarded as quasi money a and a and b and a, c and dd. dc. db. ba..... d. a, c and d
The net time deposit with banks is $400 million and the M1 component of money supply is $870 million Calculate M3
Calculate the M4 measure of Money supply if M3 is $31,000 million and the total deposit with post office is $8800 million
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.
The Island Nation of Murlonio prints its own currency called the Mariano. Use the data below to calculate the M1 measure of the money supply. Amount $4,763 $896 Source Cash in circulation Vault cash held in bank reserves Checking deposits $36,004 Savings deposits $20,824 Treasury Bills, Notes, and Bonds $45,392 Certificates of Deposit (under $100,000) $39,823 Individual Money Market Accounts $45,793 Corporate Bonds $34,580 Do not round your answer.