# ECO 372 WEEK 3 Money Creation Worksheet

## ECO 372 WEEK 3 Money Creation Worksheet

ECO 372 WEEK 3 Money Creation Worksheet

Complete the Money Creation Worksheet.

Click the Assignment Files tab to submit your assignment.

1. What are the functions of money?
1. Define M1 and M2. Which is larger?
1. If the reserve requirement is 25 percent, and banks keep no excess reserves, what will happen to the money supply following the addition of \$100 cash to bank            reserves (be sure to use the money multiplier to calculate your answer)?

ECO 372 WEEK 3 Money Creation Worksheet

Complete the Money Creation Worksheet.

Click the Assignment Files tab to submit your assignment.

1. What are the functions of money?
1. Define M1 and M2. Which is larger?
1. If the reserve requirement is 25 percent, and banks keep no excess reserves, what will happen to the money supply following the addition of \$100 cash to bank            reserves (be sure to use the money multiplier to calculate your answer)?

# ECO 372 WEEK 3 Money Creation Worksheet

## ECO 372 WEEK 3 Money Creation Worksheet

ECO 372 WEEK 3 Money Creation Worksheet

Complete the Money Creation Worksheet.

Click the Assignment Files tab to submit your assignment.

1. What are the functions of money?
1. Define M1 and M2. Which is larger?
1. If the reserve requirement is 25 percent, and banks keep no excess reserves, what will happen to the money supply following the addition of \$100 cash to bank            reserves (be sure to use the money multiplier to calculate your answer)?

ECO 372 WEEK 3 Money Creation Worksheet