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HW_Assignment3 (1) (Protected View) - Word (Unlicensed Product) A Hadeelabdallah 1995@gmail.com X File Home Insert Design Layout References Mailings Review View Help Tell me what
HW_Assignment3 (1) (Protected View) - Word (Unlicensed Product) A Hadeelabdallah 1995@gmail.com X File Home Insert Design Layout References Mailings Review View Help Tell me what you want to do PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing X Homework Assignment 3 (Total Points 32) I. Measures of Money Supply: Q.1. Suppose the country X has the following monetary asset information as of year 2010: Cash in hands of the public = $300b (where 'b' represents billion) Demand Deposits (DD) = $400b Other Checkable Deposits = $150b Traveler's checks = $50b Savings Type accounts = $2000b Money Market Mutual Funds (MMMIF) = $10006 Small Time Deposits = $5006 Large Time Deposits = $4506 "a) Calculate MI for Country X (4 points) (b) Calculate M2 for Country X (4 points) (c) Which item is not included in the calculations of MI and M2? (4 points) 2. Given the following information, what would be the value of MI? (4 points) Small time deposits 5650 billion Checking deposits $300 billion Savings-type accounts $750 billion Money market mutual finds $600 billion Travelers' checks $ 25 billion Large time deposits $600 billion Cash in hand $100 billion Il. Creation of Money: 2-1 Suppose that the T- account for Sovereign Bank is as follows and the reserve requirements ratio 18 20% ASSETS LIABILITIES Cash Reserves $ 1,000 Demand Deposits $5.000 Loans $ 4,000 $ 5,000 65 000 a) What is the size of the money multiplier?(4 points) b) With the present required ratio how much total money banking system can create? (4 points Page 1 of 2 326 words + 50% 57 2:13 PM Q Search 9 a O 200m W ENG 9 3/27/2023HW_Assignment3 (1) (Protected View) - Word (Unlicensed Product) A Hadeelabdallah1995@gmail.com X File Home Insert Design Layout References Mailings Review View Help Tell me what you want to do PROTECTED VIEW Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing X non ct a) What is the size of the money multiplier?(4 points) b) With the present required ratio how much total money banking system can create? (4 points) 2. Given the balance sheet below and assuming a required reserve ratio of 20 percent, ho w much (in dollar terms) must the bank hold in required reserves? (4 points) Asset Liabilities and Net Worth Property $ 5 million Demand deposits $ 80 million Tovernment bands $10 million Vault cash $15 million Deposited in $20 million Net worth $ 20 million Federal Reserve accounts can $50 million TOTAL LIABILITIES TOTAL ASSETS $100 million PLUS NET WORTH $100 million If the required reserve ratio is 0.2, and a bank has $100 million in demand deposits and $40 m illion in property and buildings, how much reserves it needs to hold? (4 points) Page 1 of 2 326 words + 50% 57 2:13 PM Q Search O 2com W ENG 9 3/27/2023
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