Run the money supply

Exercise and reference answers

Questions

1. Correct

   M1

   Choices

   1. M1
   2. M2
   3. Neither

2. Correct

   M2

   Choices

   1. M1
   2. M2
   3. Neither

3. Correct

   Neither

   Choices

   1. M1
   2. M2
   3. Neither

4. Correct

   10

   Choices

   1. 10
   2. 1
   3. 69

5. Correct

   1

   Choices

   1. 10
   2. 1
   3. 69

6. Correct

   69

   Choices

   1. 10
   2. 1
   3. 69

Instructions

Cash, savings deposit, credit card: M1, M2 or neither; then reserve %, Safe Bank net worth $M, big-12 asset %.

Explanation