🏷️ LIMITED TIME OFFER: GET 20% OFF GRADE+ YEARLY SUBSCRIPTION →
Log in
Economics
1
answer
0
watching
147
views
2 Nov 2020

7. Banks offer a range of accounts to serve different needs. These include:

a. checking account

b. saving account

c. both a and b

Booster class
Microeconomics
Skill
Explaining Households Supply of Financial Capital
Watch
1
answer
0
watching
147
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Raushan Raj
Raushan RajLv8
2 Nov 2020

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

1. Bank of Beacon Hill has total reserves of $40 million and current total checking account deposits of $200 million. With a legal reserve requirement of 10% of total checking accounts, what are the bank's legal reserves and excess reserves? If the bank creates a new loan in the form of a new checking account equal to its excess reserves and each check is deposited in another commercial bank, what can the banking system do in total maximum new checking accounts (loans), given the simple bank deposit multiplier?

2. If banks desire to retain excess reserves of 10% of total checking accounts and borrowers hold 10% of their new checking accounts (loans) for liquidity purposes and do not spend that 10%, what will be the maximum impact on the money supply in the form of new checking accounts?

(Money Creation) Show how each of the following would initially affect a banks assets and liabilities. a. Someone makes a $10,000 deposit into a checking account. b. A bank makes a loan of $1,000 by establishing a checking account for $1,000. c. The loan described in part (b) is spent. d. A bank must write off a loan because the borrower defaults.

The M1 measure of the money supply equals

a. paper money plus coins in circulation.

b. currency plus checking account balances.

c. currency plus checking account balances plus traveler's checks.

d. currency plus checking account balances plus traveler's checks plus savings account balances. 

 
 

Question: The M1 Measure Of The Money Supply Equals Paper Money Plus Coins In Circulation. Currency Plus Checking Account Balances. Currency Plus Checking Account Balances Plus Traveler's Checks. Currency Plus Checking Account Balances Plus Traveler's Checks Plus Savings Account Balances. If A Person Withdraws Exist500 From His/her Savings Account And Puts It ...

This problem has been solved!

See the answer

QUESTION 21 2.5 points Save Answer The M1 measure of the money supply equals O paper money plus coins in circulation. O currency plus checking account balances. O currency plus checking account balances plus travelers checks. O currency plus checking account balances plus travelers checks plus savings account balances. QUESTION 22 2.5 points Save Answer If a person withdraws S500 from his/her savings account and puts it in his/her checking account, then M1 will_---and M2 will_- O increase; decrease O increase; not change O not change; increase O not change; decrease O not change; not change QUESTION 23 2.5 points Save Answer If the required reserve ratio is 10 percent, an increase in bank reserves of $1,000 can support an increase in checking account deposits in the banking system (including the original deposit) of up to $100. $1,000. $10,000. $100,000

Show transcribed image text

Expert Answer 

 100% (3 ratings)
21. M1 includes currency(both paper and coin),checking accounts,traveler's checks(of non-bank issuers),demand deposits,other checkable deposits and negotiable order of withdrawl accounts(NOW). M1 doesview the full answer

Transcribed Image Textfrom this Question

The M1 measure of the money supply equals paper money plus coins in circulation. currency plus checking account balances. currency plus checking account balances plus traveler's checks. currency plus checking account balances plus traveler's checks plus savings account balances.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in