Econ Credit Creation Pastpaper

2008-08-16 8:59 am

The following are the consolidated balance sheets of all commercial banks for January and February in a certain year :

January
Assets ($mn)Liabilities ($mn)
Cash Reserve 40Demand Deposits 20
Loans 60Saving Deposits 40
Time Deposits 40

February
Assets ($mn)Liabilities ($mn)
Cash Reserve 50Demand Deposits 30
Loans 50Saving Deposits 40
Time Deposits 30

According to the above consolidated balance sheets, what are the changes in M1 and M2 from January to February ? Show your calculation.

Thanks a lot.. dont understand the marking scheme

回答 (1)

Gabriella Montez

2008-08-16 9:00 pm

✔ 最佳答案

M1 = Cp + Dd
M1 in Jan = $ 20M
M1 in Feb = $ 30M
Change in M1 = $ 30M - $ 20M = + $ 10M
M2 = M1 + Saving deposits + Time deposits in licensed banks
M2 in Jan = $ 20M + $ 40M + $ 40 M
= $ 100M
M2 in Feb = $ 30M + $ 40M + $ 30M
= $ 100M
Change in M2 = $ 100M - $ 100M = 0

參考: My Econ Knowledge

👍 0 👎 0