Question 1

Why did M1 grow so rapidly in the early 1990s, whereas M2 did not?

Accepted Answer

The answer of Why did M1 grow so rapidly in...

Question 2

Describe the coin shortage of 1999 and 2000 and describe why it occurred.What ended the shortage?

Accepted Answer

The answer of Describe the coin shortage of 1999 and...

Question 3

What is seignorage revenue and how does it apply to U.S.coins?

Accepted Answer

The answer of What is seignorage revenue and how does...

Question 4

Gary Goldwater has $5,000 in cash.He deposits $1,000 in his checking account, buys $500 of traveler's checks, puts $1,500 in his money-market mutual fund, and buys a $2,000 CD.How does this transaction affect M1 and M2?

Accepted Answer

The answer of Gary Goldwater has $5,000 in cash.He deposits...

Question 5

Describe the difference between inside money and outside money, and explain whether each of the following items represent inside money or outside money:
a.Checking accounts
b.Coins
c.Travelers checks
d.Money-market mutual funds
e.$100 bills

Accepted Answer

The answer of Describe the difference between inside money and...

Question 6

Donovan's $200,000 CD matures.He deposits $20,000 into his checking account, buys a CD for $150,000, and puts $30,000 into his money-market mutual fund.How does this affect M1 and M2?

Accepted Answer

The answer of Donovan's $200,000 CD matures.He deposits $20,000 into...

Question 7

Donovan's $200,000 CD matures.He deposits $20,000 into his checking account, buys a CD for $80,000, and puts $100,000 into his money-market mutual fund.How does this affect M1 and M2?

Accepted Answer