pathophysiology. Congestive Heart Failure
August 23, 2021Ethics # 5 Instructions: Tonya’s Case: Ethics and Professional Codes
August 23, 2021
Problem Set 5
(HINT: Make certain you have done the Internet Activity #5 before doing this Problem Set #5!)
QUESTIONS 1-2 ONLY: Compute M1 and M2 given the following. Assume any asset not listed has a zero value.
Asset |
Amount(Billions of Dollars) |
Currency and Coins not in bank vaults |
110 |
Savings Deposits |
220 |
Checkable Deposits |
300 |
Small Time Deposits of less than $100,000 |
200 |
Credit Card Balances |
140 |
Stock and Bond Mutual Funds |
100 |
Traveler’s Checks |
120 |
Nonbank Public Holdings of US Savings Bonds |
45 |
- Calculate M1.
- Calculate M2.
- Suppose Aunt Sophie transfers $1,000 to her savings account from her checking account. What happens to the value of M1 and to M2?
- Suppose Uncle Nacho sells shares of Time Warner stock for $20,000 and puts the proceeds from the sale into his money market mutual fund account. What happens to the value of M1 and to M2?
- Why aren’t credit card balances included in M1 or M2?
- What are the two reasons people wish to hold money?
- Which of the reasons for holding money gives the demand curve for money its downward slope? Why?
SKIPPING SOME QUESTIONS THAT I ALREADY HAVE ANSWERS TO—- SKIPS TO 24.
- What happens to the federal funds rate when the Federal Reserve increases bank excess reserves and the money supply through open market operations?
- What happens to the federal funds rate when the Federal Reserve decreases bank excess reserves and the money supply through open market operations?
- How might the Federal Reserve implement an expansionary monetary policy? Describe how the FED might use its three major policy tools to accomplish this.
- How might the Federal Reserve implement a restrictive or contractionary monetary policy? Describe how the FED might use its three major policy tools to accomplish this.
- How do lags affect monetary policy?
Questions 29-32: Suppose a bond with no expiration date has a face value of $5,000 and pays a fixed amount of interest of $500 annually.
- What is the interest yield on the bond when its market price is $6,000?
- What is the interest yield on the bond when its market price is $12,000?
- What is its market price when its interest yield is 5%?
- What is its market price when its interest yield is 8%?
Questions 33-40: The Second National Bank has vault cash in the amount of $500,000, outstanding loans of $200,000, buildings worth $700,000, U.S. government securities worth $100,000, and checkable deposits of $1,500,000.
- Identify and list each of this bank’s assets.
- Identify and list each of this bank’s liabilities.
Questions 35-40:Assume the bank faces a reserve ratio of 5%. What is the value of
- required reserves
- excess reserves
- monetary multiplier
- the maximum amount that money supply can be changed
- As a nationally chartered “bank”, which agency gave it the power to do banking?
- As a nationally chartered “bank”, which agency insures its depositors?
Do you need a similar assignment done for you from scratch? We have qualified writers to help you. We assure you an A+ quality paper that is free from plagiarism. Order now for an Amazing Discount!
Use Discount Code "Newclient" for a 15% Discount!
NB: We do not resell papers. Upon ordering, we do an original paper exclusively for you.