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++.
Expert
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.
Reserve: The amount of a fund balance set sideways to give for expenditures from the unencumbered balance for ongoing appropriations, future apportionments, and economic uncertainties, pending salary or price raise appropriations, and appropriations f
Normal 0 false false
What are a bank's main reserves? Vault cash & deposits in the bank's account at the Fed are utilized to satisfy these reserve requirements; they are termed as primary reserves. These primary reserves are non-interest-earning assets hel
Nongovernmental Cost Funds: For lawful basis purposes, employed to budget and account for revenues other than common and special taxes, licenses, and fees or some other state revenues.
Explain negative consequences of a company holding too much cash? A company holding too much cash would be giving up the chance to invest more in income generating assets
May Revision: The annual update to the Governor’s Budget having a revised estimate of General Fund revenues for the present and ensuing fiscal years, any proposals to adjust expenditures to reflect the updated revenue estimates,
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
18,76,764
1944645 Asked
3,689
Active Tutors
1412155
Questions Answered
Start Excelling in your courses, Ask an Expert and get answers for your homework and assignments!!