Question

Match the general terms from the book with the U.S. specific terms defined in the lectures....

Match the general terms from the book with the U.S. specific terms defined in the lectures.

__5__

Policy rate

__1__

Broad money. Base money minus reserves plus bank money.

__2__

Base money, legal tender, or high-powered money. Currency plus reserves.

__4__

Central bank

__3__

Bank money

1.

Monetary base

2.

Checking accounts or demand deposits

3.

M1

4.

Federal Reserve System

5.

Federal funds rate

Homework Answers

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Between February 2020 and April 2020, the monetary base of the United states Economy (not seasonally...
Between February 2020 and April 2020, the monetary base of the United states Economy (not seasonally adjusted) increased from under $1 trillion to over $8 trillion. This is due to the massive buying of assets by the Federal Reserve. True or False .The monetary base consists of reserves and Federal Reserve Notes. currency in circulation and Federal Reserve notes. currency in circulation and reserves. currency in circulation and the U.S. Treasury's monetary liabilities. 3. A major source of funds for...
Q:Consider the following monetary situation: -The currency-to-deposit ratio is 1\4 -Required reserve ratio is 1\4 -The...
Q:Consider the following monetary situation: -The currency-to-deposit ratio is 1\4 -Required reserve ratio is 1\4 -The monetary base is 9 trillion -Banks hold no excess reserves a) Compute currency in circulation, checking deposits, M1, and the money multiplier b) Jerome Powell sells $100 billion worth of tbills. Compute what impact (sign and magnitude) this has on the money supply. If the Fed sells tbills, are they attempting to raise or lower the Fed funds rate?
Compute M1 and M2 given the following data (3pts): Money market mutual funds $250B Traveler’s checks...
Compute M1 and M2 given the following data (3pts): Money market mutual funds $250B Traveler’s checks $10B Cash on Hand $2525B Dollars held by European Central Bank $250B Cash held by the Federal Reserve $700B Vault Cash at Banks $300B Small time deposits $350B Savings-type accounts $225B Checking deposits $450B Bank Holdings of foreign currency $320B Bank Reserves at the Fed $1600B Corporate shares held by public $1200B Corporate shares held by banks $1700B M2:______________
Provide a brief explanation or show work 1. In the United States, the money supply is...
Provide a brief explanation or show work 1. In the United States, the money supply is determined: a. only by the Fed. b. only by the behavior of individuals who hold money and of banks in which money is held. c. jointly by the Fed and by the behavior of individuals who hold money and of banks in which money is held. d. according to a constant-growth-rate rule 2. In a 100-percent-reserve banking system, if a customer deposits $100 of...
The money base (M0) is $200 and the required reserve ratio is 10%. All deposits are...
The money base (M0) is $200 and the required reserve ratio is 10%. All deposits are checking deposits. a. If the public holds no currency and banks hold no excess reserves, what will M1 be? 200*10=2000 b. If the central bank buys another $200 worth of treasury securities, what will happen to M0 and M1? This is what i think of doing here: 200/10%=2000 M0 is not changing M1=> 2000 + 200 = 2200 M1 is increasing Is this correct?...
1.When the Federal Reserve sells securities to a commercial bank the monetary base------ and reserves------- A....
1.When the Federal Reserve sells securities to a commercial bank the monetary base------ and reserves------- A. Remains unchanged; decrease B. Remains unchanged; increase C. Decrease; decrease D. Decrease; remain unchanged 2. If the required reserve ratio is 15 percent, currency in circulation is $400 Billion, checkable deposits are $800 billion, and excess reserves are $0.8 billion , then the M1 multiplier is A. 2.5 B. 1.67 C. 2.3 D. .651 3. If the nonbank public elects to holds more currency...
15. Under the assumptions of this chapter, the value of the money multiplier (m) is: a....
15. Under the assumptions of this chapter, the value of the money multiplier (m) is: a. Always a positive fraction (0 < m < 1) b. Always greater than one (m > 1) c. Not necessarily positive d. Always less than the reserve-deposit ratio 16. The Federal Reserve, which is the central bank of the United States, can increase the U.S. monetary base (B) by taking the following action: a. Increase the currency held by the public (C) by printing...
Let’s say the Federal Reserve buys $20 Billion in bonds from private banks: *Total reserve requirement...
Let’s say the Federal Reserve buys $20 Billion in bonds from private banks: *Total reserve requirement = 0.10 x $1Trillion = $100 Billion What is the total amount (in $) of reserves that banks can lend? Using the simple deposit multiplier, how much additional money (M1) is created by this process? What will happen to the Federal Funds Rate, the prime rate, and other nominal interest rates in the economy? (Go up, down, stay the same?) Why? If the price...
1. Which is MOST liquid? a. a mortgage loan b. checkable deposits in a bank c....
1. Which is MOST liquid? a. a mortgage loan b. checkable deposits in a bank c. a new truck d. a diamond 2. An illiquid bank is one that: a. borrows in the market for federal funds. b. borrows at the discount window. c. has more short-term liabilities than short-term assets. d. has more long-term assets than liabilities. 3. As the reserve ratio rises: a. a bank's opportunity cost of holding reserves rises. b. the interest rate on money will...
1. If China is going to maintain its peg with the dollar despite its trade surplus,...
1. If China is going to maintain its peg with the dollar despite its trade surplus, what must the Bank of China do if it has no Sovereign Wealth Fund? a.   Short sell dollars in exchange markets b.   Reduce its vast holdings of dollars c.   Increase its holdings of dollars d.   Raise the value of its currency to discourage export surpluses e.   Create a new currency 2. Pick the two answers to the following: What would be the immediate effect on M1 of a bank...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT