1.13 Read the following extract and answer the question that follows. Yes, SANParks can refuse to take your cash, says the Reserve Bank At the start of September, South African National Parks (SANParks) will stop accepting cash payments at the entrances, and inside, some of its parks, a policy to be implemented across every national park during 2023. And that is quite alright, says the SA Reserve Bank, as custodian of the rules intended to manage the currency. SanParks announced its roadmap for going cash free – both for the convenience of visitors and for reasons of safety – on Wednesday. Source: https://www.businessinsider.co.za/sanparks-is-legally-allowed-to-refuse-cash-reserve-bank-says-2021-8 Accessed: 23/08/21 The impact of the above decisions by SANParks will have its impact on... a) .the M1 measure of money. b) ...the M2 measure of money. c) .the M3 measure of money. d) .the number of notes and coins in circulation in the economy.

1.13 Read the following extract and answer the question that follows. Yes, SANParks can refuse to take your cash, says the Reserve Bank At the start of September, South African National Parks (SANParks) will stop accepting cash payments at the entrances, and inside, some of its parks, a policy to be implemented across every national park during 2023. And that is quite alright, says the SA Reserve Bank, as custodian of the rules intended to manage the currency. SanParks announced its roadmap for going cash free – both for the convenience of visitors and for reasons of safety – on Wednesday. Source: https://www.businessinsider.co.za/sanparks-is-legally-allowed-to-refuse-cash-reserve-bank-says-2021-8 Accessed: 23/08/21 The impact of the above decisions by SANParks will have its impact on... a) .the M1 measure of money. b) ...the M2 measure of money. c) .the M3 measure of money. d) .the number of notes and coins in circulation in the economy.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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hi please assist with this question. Read the following extract and answer the question that follows.Yes, SANParks can refuse to take your cash, says the Reserve BankAt the start of September, South African National Parks (SANParks) will stop accepting cash payments at theentrances, and inside, some of its parks, a policy to be implemented across every national park during 2023. And that is quite alright, says the SA Reserve Bank, as custodian of the rules intended to manage the currency.SanParks announced its roadmap for going cash free – both for the convenience of visitors and for reasons of safety – on Wednesday. The impact of the above decisions by SANParks will have its impact on... a) ...the M1 measure of money.b) ...the M2 measure of money.c) ...the M3 measure of money.d) ...the number of notes and coins in circulation in the economy
Yes, SANParks can refuse to take your cash, says the Reserve BankAt the start of September, South African National Parks (SANParks) will stop accepting cash payments at the entrances, and inside, some of its parks, a policy to be implemented across every national park during 2023.And that is quite alright, says the SA Reserve Bank, as custodian of the rules intended to manage the currency.SanParks announced its roadmap for going cash free – both for the convenience of visitors and for reasons of safety – on Wednesday. The impact of the above decisions by SANParks will have its impact on…a) …the M1 measure of money.b) …the M2 measure of money.c) …the M3 measure of money.d) …the number of notes and coins in circulation in the economy.
a) Suppose that Tk.10,000 in new taka bills (never seen before) falls magically from the sky into your hands. What are the minimum increase and the maximum increase in the money supply that may result? Assume the required reserve ratio is 10 percent.b) Suppose you receive Tk. 10,000 from your grandmother and deposits the money in a saving account. your grandmother gave you the money by writing a check on her saving account. Would the maximum increase in the money supply still be what you found it to be in part a) where you received the money from the sky? Why or why not?c) Suppose that instead you getting Tk. 10,000 from the sky or a check through your grandmother, you get the money from your mother who had buried it in a can in her backyard. In this case, would the maximum increase in the money supply be what you found it to be in part a)? Why or why not?
a) Suppose that Tk.10,000 in new taka bills (never seen before) falls magically from the sky into your hands. What are the minimum increase and the maximum increase in the money supply that may result? Assume the required reserve ratio is 10 percent.b) Suppose you receive Tk. 10,000 from your grandmother and deposits the money in a saving account. your grandmother gave you the money by writing a check on her saving account. Would the maximum increase in the money supply still be what you found it to be in part a) where you received the money from the sky? Why or why not? c) Suppose that instead you getting Tk. 10,000 from the sky or a check through your grandmother, you get the money from your mother who had buried it in a can in her backyard. In this case, would the maximum ncrease in the money supply be what you found it to be in part a)? Why or why not?
suppose that you deposit 8000 in your bank and the required reserve ration is 15 percent the maximum loan your bank can make as a direct result of your deposit is
a) Suppose that Tk.10,000 in new taka bills (never seen before) falls magically from the sky into your hands. What are the minimum increase and the maximum increase in the money supply that may result? Assume the required reserve ratio is 10 percent. Explain in details.b) Suppose you receive Tk. 10,000 from your grandmother and deposits the money in a saving account. your grandmother gave you the money by writing a check on her saving account. Would the maximum increase in the money supply still be what you found it to be in part a) where you received the money from the sky? Why or why not? Explain in details. c) Suppose that instead you getting Tk. 10,000 from the sky or a check through your grandmother, you get the money from your mother who had buried it in a can in her backyard. In this case, would the maximum increase in the money supply be what you found it to be in part a)? Why or why not? Explain in details.
9. How would you incorporate security considerations/costs into the transactions demand model? What would this imply for the demand for currency in a relatively insecure urban environment (a) compared with a relatively safe one, (b) when owner-identiﬁed smart cards become available? Do these factors affect the demand for demand deposits? How would the proportion of currency to demand deposits be affected in these cases? 10. Can the transactions demand model be used to explain why ﬁnancial innovations in recent decades have reduced the transactions demand for M1? 11. Are transactions demand models useless, as Sprenkle (1969) argued? If they are, how would you explain the demand for M1 or just for demand deposits in the economy?
Consider a new deposit to the Canadian banking system of $2,500. Suppose that all commercial banks have a target reserve ratio (v) of 25 percent and there is no cash drain. a. The first round has been completed in the table below. Now, recalling that the new loans in the first round become the new deposits in the second round, complete the table. (Round your responses to the nearest dollar. If you have rounded a number and need to use it in another calculation, you should use this rounded value. For example, if the new loans in the second round are found to be $1,255.76 and rounded to $1,256, then if at some later point you need to use this value, you should use $1,256, not $1,255.76.) Round A in Deposits First Second $2,500 AReserves $625 ALoans $1,875 ETTY Third Fourth
In the mid 1800's, grain sellers in Chicago would deliver their grain to warehouses and receive a paper receipt that represented their claim on the grain in storage. These receipts became so widely used that grain traders began to use them as money, and they would use the warehouse receipts to settle debts and as collateral to secure short-term loans. Despite their widespread use as a form of currency, the warehouse receipts were not fiat money because: A. Grain is a commodity, so the receipts were commodity money and not fiat money B. The receipts were not legal tender formally recognized by a government
Yes, SANParks can refuse to take your cash, says the Reserve Bank At the start of September, South African National Parks (SANParks) will stop accepting cash payments at the entrances, and inside, some of its parks, a policy to be implemented across every national park during 2023. And that is quite alright, says the SA Reserve Bank, as custodian of the rules intended to manage the currency. SanParks announced its roadmap for going cash free - both for the convenience of visitors and for reasons of safety – on Wednesday. Source: https://www.businessinsider.co.za/sanparks-is-legally-allowed-to-refuse-cash-reserve-bank-says-2021-8 Accessed: 23/08/21 The impact of the above decisions by SANParks will have its impact on... a) .the M1 measure of money. b) .the M2 measure of money. c) .the M3 measure of money. d) .the number of notes and coins in circulation in the economy. ... ...
Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 25%. The Federal Reserve buys a government bond worth $1,800,000 from Felix, a customer of First Main Street Bank. He deposits the money into his checking account at First Main Street Bank. Now, suppose First Main Street Bank loans out all of its new excess reserves to Deborah, who immediately writes a check for the full amount to Carlos. Carlos then immediately deposits the funds in his checking account at Second Republic Bank. Then Second Republic Bank lends out all of its new excess reserves to Larry, who writes a check to Janet, who deposits the money in her account at Third Fidelity Bank. Finally, Third Fidelity lends out all of its new excess reserves to Megan. Assume this process continues, with each successive loan deposited into a checking account and no banks keeping any excess reserves. Under these assumptions, the $1,800,000 injection…
1. a) Suppose that Tk.10,000 in new taka bills (never seen before) falls magically from the sky into your hands. What are the minimum increase and the maximum increase in the money supply that may result? Assume the required reserve ratio is 10 percent. b) Suppose you receive Tk. 10,000 from your grandmother and deposits the money in a saving account. your grandmother gave you the money by writing a check on her saving account. Would the maximum increase in the money supply still be what you found it to be in part a) where you received the money from the sky? Why or why not? c) Suppose that instead you getting Tk. 10,000 from the sky or a check through your grandmother, you get the money from your mother who had buried it in a can in her backyard. In this case, would the maximum increase in the money supply be what you found it to be in part a)? Why or why not? 2. a) Suppose growth rate of Real GDP is 6% and the growth rate of velocity is 3%. If Bangladesh Bank wants to have a 5 %…