This assigment comes with a breakdown/formulas (listed below) to help you easily solve questions. This is not at all a hard assignment. I just do not have the time. Thank you!
For questions 1 and 2: Remember
- Question 1: Calculate M1: remember that M1 = coins and currency in circulation + checkable (demand) deposit + traveler’s checks.
- Question 2: M2 = M1 + savings deposits + money market funds + certificates of deposit + other time deposits.
- Question 3: Reserve Ratio is (Reserves/ deposits) *100 for a percentage
- Question 4: Money multiplier: is 1/Required reserve rate
- First, look at the T-account and solve for the reserve rate ratio
- Then, divide 1 by the reserve ratio that you just solved
- Question 5: Take the multiplier * ( the deposited amount ) and subtract the deposit amount
- First, calculate the multiplier by dividing the reserves by the total deposits
- Then, multiply that by the amount deposited
- Then, subtract the initial deposit amount since it was part of the money supply
- Question 6: Take the amount that is deposited and multiply it by the required reserve %
- Question 7: Equilibrium interest rate is where the quantity demanded =quantity supplied.
- So look at the intersection where Demand meets with Supply
- Then look to your left to determine the rate
- Question 8: Anytime you see that there is a shift for “intertemporal” consumption-savings and to BUY more things
- Then we want to think Does this change impact the demand for borrowing?
- Does this change the impact for supply for borrowing? Or can it effect both?
- In this case since there is a shift for intertemporal and to Buy , then supply will shift to the left and demand will shift to the right.
- The graphs that Instructional Designer inputted does not show this. So I’m going to waive this question as well as 9
- Question 9: When there is a major change in their consumption/savings
- Then we want supply curve to shift to the Right
- And Demand curve to shift to the Left
- I’ll waive this question
- Question 10/11: Remember (Reserves/ deposits) *100 for a percentage
- So you want to see what are your 2 variables that is given: Deposits and %
- Therefore, solve for Reserves.
- Maneuver the equation to solve for Reserves
For this assignment, download the worksheet that is listed above. Save the document to your computer. Answer all of the questions completely. Here are some options for submitting the completed document:
- Print out the document. Complete the work by hand and take a picture of the completed assignment. Make sure the picture is clear and is of high quality so it can be easily read. Submit the picture(s) to the assignment.
- Print out the document. Complete the work by hand and scan the pages. Submit the scans to the assignment.
- Type directly onto the document. Save the document as a new file and upload the new file.
Show as much work as you can for the calculations. Partial credit will be awarded when applicable. You will be graded on the accuracy and completeness of your answers.
