# Macro ch 10 assignment | Economics homework help

## Instructions

Money Supply & The Federal Reserve System

Using what you learned in Chapter 10, complete the problems on the assignment (link on the previous page).  This assignment will look at how banks hold money, how the multiplier is calculated and how changes in Monetary policy by the Federal Reserve will impact your savings and ability to borrow.

Grading: 6 points for #1, 6 points for #2, 3 points for #3 and 5 points for #4 for a total of 20 points.

## ASSIGNMENT CHAPTER 10

Using what you learned in Chapter 10, complete the problems on the attached page.  This assignment will look at how banks hold money, how the multiplier is calculated and how changes in Monetary policy by the Federal Reserve will impact your savings and ability to borrow.

Chapter 10: The Money Supply & The Federal Reserve System

(https://mga.view.usg.edu/content/enforced/1832294-CO.830.ECON2105.58873.20201/Chapter_10_Drop%20Box%20Assignment_FA18(2).xlsx?_&d2lSessionVal=LPPZEcnuzmkIFeLFp6h93JOAv&ou=1832294)

When you deposit money into a bank, do you know what happens to it? It doesn’t simply sit there. Banks are actually allowed to loan out up to 90% of their deposits. For every \$10 that you deposit, only \$1 is required to stay put.

This practice is known as fractional reserve banking. Now, it’s fairly rare for a bank to only have 10% in reserves, and the number fluctuates. Since checkable deposits are part of the U.S. money supplies, fractional reserve banking, as you might have guessed, can have a big impact on these supplies.

This is where the money multiplier comes into play. The money multiplier itself is straightforward: it equals 1 divided by the reserve ratio. If reserves are at 10%, the minimum amount required by the Federal Reserve, then the money multiplier is 10. So if a bank has \$1 million in checkable deposits, it has \$10 million to work with for stuff like loans and reserves.

Now, typically, the money multiplier is more like 3, because banks can always hold more in reserves than the minimum 10%. When the money multiplier is higher, like during a boom, this gives the Fed more leverage to move M1 and M2 with a small change in reserves. But when the multiplier is lower, such as during a recession, the Fed has less leverage and must push harder to wield its indirect influence over M1 and M2.  Here’s the MR University video to help you complete your assignment.

The Money Multiplier

(https://www.mruniversity.com/courses/principles-economics-macroeconomics/federal-reserve-money-multiplier)

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.