Question 10: Go to the St. Louis Federal Reserve database, and find data on the M1 Money Stock
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Louis Federal Reserve website at https://fred.stlouisfed.org/ Show more…
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Use the following table to determine the levels of M1 and M2 in the United States. Money Categories in the United States Asset | Amount (billions of dollars) Currency | $77 Demand deposits | 76 Money market funds | 42 Other checkable deposits | 35 Savings deposits | 445 Small time deposits | 20 Traveler's checks | 3 Instructions: Enter your answers as a whole number. a. Calculate the M1 money supply $ billion b. Calculate the M2 money supply $ billion
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Given the following data, answer four questions about the money supply and the money multiplier: Value Total reserves: $36 billion Transactions deposits: $600 billion Cash held by public: $300 billion Bonds held by public: $400 billion Stocks held by public: $140 billion Gross domestic product: $8 trillion Interest rate: 6% Required reserve ratio: 0.05 a. How large is the money supply (M1)? b. How much excess reserves are there? c. What is the money multiplier? d. What is the available lending capacity for the banking system?
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"QUESTION 11 If the Federal Reserve purchases $250 million in US Treasury Securities, what will happen to overall bank deposits under the following assumptions: Banks convert 100% of excess reserves to loans, borrowers return 70% of cash to bank, and banks' reserve requirement is 10% 5437.5 million 5625 million 5833.33 million 52500 million 81750 million"
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