91影视

Money supply :

The money supply is the entire amount of money鈥攃ash, coins, and balances in bank accounts鈥攊n circulation. The money supply is generally defined to be a set of safe assets that households and businesses can use to make payments or to hold as short-term investments.

Excess reserve ratio:

For commercial banks, excess reserves are estimated against standard reserve requirement amounts set by central banking authorities. These required reserve ratios set the minimum liquid deposits that must be in reserve at a bank; more is regarded as excess.

The currency-deposit ratio is defined as it is the relationship between the amount of cash a person carries and the amount of money she keeps in readily available bank accounts, such as scanning accounts. The formula is cr = C/D.

Money multiplier :

The Money Multiplier refers to how an initial deposit can lead to a larger final increase in the total money supply. For example, if the commercial banks earn deposits of $1$million and this leads to the last money supply of $10$ million. The money multiplier is $10$.

Money supply =currency in circulation +Checkable deposits

= $620billion+950billion$

= $1570$billion

Excess reserve ratio =$\frac{Excessreserves}{Deposits}$

$=\frac{5}{950}$

$=0.016$

Currency deposit ratio = $\frac{Currencyincirculation}{Deposits}$

=$\frac{620}{950}$

=$0.653$

Money multiplier = $\frac{1+c}{r+e+c}$

= $$\begin{gathered} \frac{1+0.653}{0.09+0.016++0.653} \\ =2.178 \end{gathered}$$

Money supply = $1570$billion

Excess Reserve ratio =$0.016$

Currency deposit ratio =$0.653$

Money multiplier =$2.178$

When a central bank purchases bonds, money is moving from the central bank to individual banks in the economy, increasing the supply of money in circulation. When a central bank sells bonds, then the money is moving from individual banks in the economy is flowing into the central bank鈥攄ecreasing the quantity of money in the economy

The ratios remains same in part (a)

excess reserve ratio $0.016$

currency reserve ratio $0.0653$

Money supply =currency in circulation+ checkable deposits

currency in circulation = $1128.6$billion

checkable deposits =$1728.58$billion

$$\begin{gathered} 1128.76+1728.58 \\ =2857.34 \end{gathered}$$

Money supply =$2857.34$billion

Excess reserve ratio=$0.016$

currency deposit ratio =$0.653$

Money supply :

The money supply is the entire amount of money鈥攃ash, coins, and balances in bank accounts鈥攊n circulation. The money supply is generally defined to be a set of safe assets that households and businesses can use to make payments or to hold as short-term investments.

Excess reserve ratio:

For commercial banks, excess reserves are estimated against standard reserve requirement amounts set by central banking authorities. These required reserve ratios set the minimum liquid deposits that must be in reserve at a bank; more is regarded as excess.

Money multiplier :

The Money Multiplier refers to how an initial deposit can lead to a larger final increase in the total money supply. For example, if the commercial banks earn deposits of $1$million and this leads to the last money supply of $10$million. The money multiplier is .

The currency-deposit ratio is defined as it is the relationship between the amount of cash a person carries and the amount of money she keeps in readily available bank accounts, such as scanning accounts. The formula is cr = C/D

Excess reserve ratio =$\frac{excessreserves}{deposits}$

$=\frac{1315}{950}$

=$1.384$

Money multiplier =$\frac{1+c}{r+e+c}$

=$\frac{1+0.653}{0.09+1.384+0.653}$

currency deposit ratio =$0.653$

money supply=$1570$billion

Money supply =$1570$billion

Excess reserve ratio =$1.384$

currency deposit ratio=$0.653$

money multiplier =$0.777$