HW_chap_11_additional_answers_[1]

HW_chap_11_additional_answers_[1] - Econ 100 San Francisco...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 100 San Francisco State HW Chapter 11 You do not need to turn this problem in to me, but you can assume that there will be problems very similar to it in either a quiz or an exam. It would greatly benefit your to do it. 1) Lets say that in an economy there was: $10 million in currency outside of banks $1 million in currency in bank vaults and ATMs $15 million in checking accounts $30 million in savings accounts $3 million in outstanding checks $12 million in time deposits $16 million in money market funds $20 million in unused credit on credit cards $2 million in traveler’s checks What are the size of M1 and M2? + $10 million in currency outside of banks + $15 million in checking accounts + $2 million in traveler’s checks = $27 million = the size of M1 + $10 million in currency outside of banks + $15 million in checking accounts + $2 million in traveler’s checks + $30 million in savings accounts + $12 million in time deposits + $16 million in money market funds =$85 million = the size of M2
Image of page 1

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

View Full Document Right Arrow Icon
2) Lets say I take $2000 from under my bed and deposit it into a bank. Fill out this table to show how banks make money.
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ 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