--%>
Assignment Help - homework help

Components of the M1 money supply

Describe the components of the M1 money supply? State the largest component of the M1 money supply? State legal tender components of M1? Give the reason of greater face value of a coin than its intrinsic value? Distinguish among M2 and M2+ and M2++.

E

Expert

Verified

M1 is currency (in the circulation) plus chequable (demand) deposits. The biggest component of M1 is chequable deposits. If a coin face value were not greater than its intrinsic (metallic) value, people would eliminate coins from circulation and sell them for their metallic content. M2 = M1 + personal savings deposits & non-personal (business) notice deposits at chartered banks. M2+ = M2  +  mortgage loan companies and deposits at trust, caisses populaires and credit unions, and government savings institutions +  money market mutual funds, and life insurance annuities. M2++ = M2+ + Canada Savings Bonds & other retail instruments + non-money market funds.

 

   Related Questions in Finance Basics

  • Q : Estimation of expected incremental cash

    How do we estimate expected incremental cash flows for proposed capital budgeting project? We estimate expected incremental cash flows for proposed project through estimating the changes in sales and expenses which are incremental to the project

    		•
  • Q : Explain Merit Salary Adjustment Merit

    Merit Salary Adjustment (MSA): The cost factor resultant from the periodic raise in salaries paid to the personnel occupying authorized positions. The personnel usually receive a salary raise of 5 percent per year up to the upper sala

    		•
  • Q : Association of net present value to

    Normal 0 false false

    		•
  • Q : Explain the basic goal of a business

    Normal 0 false false

    		•
  • Q : Why do businesses spend efforts to

    Why do businesses spend effort, time and money to generate forecasts?  Describe.Businesses succeed or fail based on how well prepared they are to deal along with the situations they confront in the future. Hence they expend considerable sum

    		•
  • Q : What is Revenue Anticipation Notes

    Revenue Anticipation Notes (RANs): The cash management tool usually used to remove cash flow imbalances in the General Fund in a given fiscal year. The RANs are not a budget deficit-financing tool.

    		•
  • Q : Describe proprietorship-partnership and

    Briefly describe the terms proprietorship, partnership, and corporation.A proprietorship is a business owned by one person. Two or more people who join together to develop a business make up a partnership. It can be done on an inf

    		•
  • Q : Explain Planning Estimate Planning

    Planning Estimate (PE): A document employed to record and monitors those present and budget year expenditure adjustments comprising budget change proposals accepted for inclusion in the Governor's Budget. PEs is broken down by department, character, f

    		•
  • Q : What is Prior Year Adjustment Prior

    Prior Year Adjustment: An adjustment for the difference among prior year accruals and real expenditures or revenues. The previous year adjustment amount is usually comprised in the Fund Condition Statements as an adjustment to realign the starting fun

    		•
  • Q : Influence of mergers and acquisitions

    What influence has mergers and acquisitions had on a customer's access to branches?A branch closing that has resulted from a merger require not necessarily mean a lost relationship. The cause a branch closes is usually the presence of a nearby b

    		•