{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

ECO 210 Chp 10 HA - d traveler’s check holdings are M1 e...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Macroeconomics 210 Chapter 10: Money, Banks, and the Federal Reserve Homework Assignment Chapter 10 (pg. 354 #1.3; pg. 355 #2.3, 2.4) 1.3) a) Medium of Exchange Unit of Account Store of Value Standard of Deferred Payment b) Anything used as money should fulfill all four functions. 2.3) a) currency in circulation is counted as M1 b) checking account deposits are counted as M1 c) savings account deposits are counted as M2
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: d) traveler’s check holdings are M1 e) CitiBank Platinum MasterCard is not part of the money supply. 2.4) When you deposit the $2,000 cash into a checking account, currency in circulation (M1) decreases, and checking account deposits (M1) increases. Therefore, M1 is unchanged. If M1 is unchanged and no actions are taken in M2, M2 remains unchanged also....
View Full Document

{[ snackBarMessage ]}

Ask a homework question - tutors are online