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consider an economy with only two non-identical banks, called Bank One and Bank Two. In addition to this information, members of the public in this economy hold $5000 in cash, and there are no travelers' checks. Partial balance sheet information for each bank is given below: Bank One • Cash in bank $3000 • Equity (net worth) $2150 • US government bonds $1650 • Total savings deposits $14,000 • Deposit in the Federal Reserve $5000 Total checking deposits $54,000 Bank Two: • US government bonds $950 • Total checking deposits $46,000 • Cash in bank $2000 • Deposit in the Fed $4000 • Equity $1850 • Total savings deposits $11,000 Calculate this economy's monetary base by combining actual and potential reserves. Carefully follow all numeric instructions. Consider again the economy from the previous question. Calculate this economy's M1 money supply using the simplified definition. Carefully follow all numeric instructions. Consider again the economy from the previous question. Calculate Bank One's required reserves. Carefully follow all numeric instructions. Consider again the economy from the previous question. Calculate this economy's desired excess reserves ratio er. Be sure to use information from both banks. Round your answer to three decimal places. Consider again the economy from the previous question. Now let's say the Fed does easy (expansionary) monetary policy via OMOs with Bank One only in the amount of $1000. As a result of this transaction, calculate the economy's new monetary base by combining actual and potential reserves. Consider one last time the economy from the previous question. After this open market operation takes place, what will be Bank One's new excess reserves? Carefully follow all numeric instructions. consider an economy with only two non-identical banks, called Bank One and Bank Two. In addition to this information, members of the public in this economy hold $5000 in cash, and there are no travelers' checks. Partial balance sheet information for each bank is given below: Bank One • Cash in bank $3000 • Equity (net worth) $2150 • US government bonds $1650 • Total savings deposits $14,000 • Deposit in the Federal Reserve $5000 Total checking deposits $54,000 Bank Two: • US government bonds $950 • Total checking deposits $46,000 • Cash in bank $2000 • Deposit in the Fed $4000 • Equity $1850 • Total savings deposits $11,000 Calculate this economy's monetary base by combining actual and potential reserves. Carefully follow all numeric instructions. Consider again the economy from the previous question. Calculate this economy's M1 money supply using the simplified definition. Carefully follow all numeric instructions. Consider again the economy from the previous question. Calculate Bank One's required reserves. Carefully follow all numeric instructions. Consider again the economy from the previous question. Calculate this economy's desired excess reserves ratio er. Be sure to use information from both banks. Round your answer to three decimal places. Consider again the economy from the previous question. Now let's say the Fed does easy (expansionary) monetary policy via OMOs with Bank One only in the amount of $1000. As a result of this transaction, calculate the economy's new monetary base by combining actual and potential reserves. Consider one last time the economy from the previous question. After this open market operation takes place, what will be Bank One's new excess reserves? Carefully follow all numeric instructions.

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Monetary Base RRR D ER C where C is the currency in circulation the checkable depocash with public C... View the full answer