VonneB1684
10.12.2019 •
Business
The economy of elmendyn contains 3,000 $1 bills. a. if people hold all money as currency, the quantity of money is $ . b. if people hold all money as demand deposits and banks maintain 100 percent reserves, the quantity of money is $ . c. if people hold equal amounts of currency and demand deposits and banks maintain 100 percent reserves, the quantity of money is $ . d. if people hold all money as demand deposits and banks maintain a reserve ratio of 20 percent, the quantity of money is $ . e. if people hold equal amounts of currency and demand deposits and banks maintain a reserve ratio of 20 percent, the quantity of money is $ .
Solved
Show answers
More tips
- L Legal consultation How to Properly Inherit: Tips and Recommendations...
- H Health and Medicine Discover the Hidden Principles and Real Results of the Japanese Diet...
- H Health and Medicine Understanding Pregnancy Tests: What You Need to Know?...
- H Health and Medicine What Makes a Man a Man?...
- C Computers and Internet How to Get Rid of Spam in ICQ?...
- A Art and Culture Who Said The Less We Love a Woman, the More She Likes Us ?...
- F Family and Home How to Get Rid of Your Neighbors?...
- S Society and Politics How Could Nobody Know About the Dead Mountaineers?...
- H Health and Medicine How to Cure Adenoids?...
- H Health and Medicine Why Wearing a Back Brace Can Be Beneficial During Back Strain?...
Answers on questions: Business
- B Business In Yum! Brands, each level of management is represented by a different company. In which level does the Pizza Hut brand reside, according to the levels of managers described...
- B Business Jolivet was convicted of mail fraud and money laundering in connection with an insurance fraud scheme she carried out with her husband. They provided fraudulent documents...
- B Business Any differences in future development of monozygotic twins can be attributed only to factors....
- B Business Aone-year membership to a gym costs $725 total. the registration fee is $125 of the total, and the remaining amount is paid monthly. how much will new members pay each...
- B Business Light & Sound Trading, a sole trader selling electrical goods, started business operation on 14 July 2020 July 1 Started business with RM50 000 in the bank, a shop...
- B Business Most products are well suited to distribution by high-speed digital transmission. True False...
- B Business When david exaggerated his experience on his resume do you think he believed he would be caught? what effect did this belief have on his behavior?...
- B Business What is the term for selling related products?...
- B Business The aggregate demand curve shows the graphical relationship between the aggregate price level and the a. supply available. b. market quantity of goods and services. c....
- B Business What is the first step in the resource management process?...
Ответ:
(a) The quantity of money is $3,000 because people are holding all the currency.
(b) The quantity of money is $3,000 because banks are holding the full amount of demand deposits as a reserves.
(c) Quantity of money = Currency + Demand deposits
= 1,500 + 1,500
= $3,000.
(d) If banks have a reserve ratio of 20%, therefore,
money multiplier
= 1 ÷ Reserve ratio
= 1 ÷ 0.20
= 5.
So if people hold all money as demand deposits, then
Quantity of money = Money multiplier × Demand deposits
= 5 × $3,000
= $15,000
(e) Two equations must be satisfied:
C = D and 5 × ($3,000 - C) = D
Using the first equation in the second gives
5 × ($3,000 – D) = D
$15,000 – 5D = D
6D = 15000
D = 2500
C = 2500
D = 5 × ($3,000 - 2500)
= 2500
Total money supply = Currency + Demand deposits
= 2500 + 2500
= 5,000
Ответ:
The objectives of financial regulators are usually: market confidence – to maintain confidence in the financial system. financial stability – contributing to the protection and enhancement of stability of the financial system. consumer protection – securing the appropriate degree of protection for consumers.