M1 is the money supply that is composed of currency, demand deposits, other liquid deposits—which includes savings deposits. M1 includes the most liquid portions of the money supply because it contains currency and assets that either are or can be quickly converted to cash. However, "near mone...
Commercial banks make more money through loans and funds, and the money supply keeps multiplying. The multiplying factor is called the money multiplier.Answer and Explanation: Money multiplier (m) is the ratio of high-powered money (H) to the total money supply (M). m=...
Suppose the money supply in country {eq}\displaystyle X {/eq} is {eq}\displaystyle 44000 {/eq} and nominal {eq}\displaystyle GDP {/eq} is {eq}\displaystyle 88000 {/eq}. Calculate the velocity of money and enter it below. Velocity of...