Understanding and Calculating Different Levels of Money
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Last updated about 1 year ago
6 questions
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Key Terms!
The monetary base, also known as "high-powered money" or "base money," consists of currency in circulation and reserves held by commercial banks at the central bank. The monetary base includes physical currency (coins and paper money) in the hands of the public and commercial bank reserves (both required and excess) held at the central bank.
The money supply consists of
Question 1
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Question 2
2.
Draggable item
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Corresponding Item
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Question 3
3.
Put your answers in the following format. ($#,###)
NOTE: Non checkable savings deposits are deemed NOT liquid savings.
Question 4
4.
If the bank reserves are $1000, then what is the monetary base?
Question 5
5.
What is the M0 money supply?
Question 6
6.
What is the M1 money supply?
Reserves
Checkable Deposits
Currency in Circulation
Monetary Base (MB)
M0 Supply (Sm)
Match the following for levels of money
M1 Level of Money plus savings accounts plus short-time deposits plus mutual funds
