21 - Econ 102 9:10:00 AM Measuring the supply of money in...

Info icon This preview shows pages 1–3. Sign up to view the full content.

Econ 102 21/02/2008 09:10:00 Measuring the supply of money in the United States M1, or transactions money is money that can be directly used for Liquid transaction Checks, currency, deposit M2 or Broad money, included near monies, or close substitutes for transactions  money. Bond=M2 Check=M1 M2=M1 +savings accounts + money market accounts + other near monies The main advantage of looking at M2 instead of M1 is that M2 is sometimes 
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: more stable. ← ← The balance sheet of a bank must always balance, so that the sum of assets (reserves and loans) equals the sum of liabilities (deposits and net worth). • Reserves – 20 o Deposits – 100 • Loans – 90 o Net worth – 10 • Total – 110 o Total – 110 ← Double entry book keeping ← ← ← 21/02/2008 09:10:00 ← 21/02/2008 09:10:00 ←...
View Full Document

  • Spring '05
  • Economics, Fractional-reserve banking, Double-entry bookkeeping system

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern