Whichusually grows faster: M1 or M2? Produce a graph showing M2 divided by M1. When this ratio rises, M2 outpaces M1, and vice versa. What is the long-run pattern? Is the pattern stable?
Answer to relevant QuestionsTraveler’s checks are a component of M1 and M2. Using FRED, produce a graph of this component of the monetary aggregates (FRED code: TVCKSSL). Explain the pattern you see. Designated market makers, who historically have provided liquidity (i.e,, have stood by ready to buy and sell) in markets for specific stocks, have declined in importance. Explain this decline in terms of technology and ...If higher leverage is associated with greater risk, explain why the process of deleveraging (reducing leverage) can be destabilizing.Use Core Principle 3 from Chapter to suggest some ways in which the problems associated with the shadow banking sector during the 2007-2009 financial crisis might be mitigated in the future.Given a choice of two investments, would you choose one that pays a total return of 30 percent over five years or one that pays 0.5 percent per month for five years?
Post your question