Authority to pay interest, Management Theories

In this problem, we are going to measure the money multiplier one year prior to the Great Recession (12/2006) and compare it to the money multiplier 5 years since (12/2011).  The implication, as you may have guessed, is that hence the Fed has been paying interest on excess reserves (10/2008), the excess reserve to deposit ratio has risen which implies a lower money multiplier.   

Data you require for problem 1:

Monetary Base    Dec 2006: 837.701 ;  Dec 2011: 2603.487

Excess Reserves  Dec 2006: 1.863  ;  Dec 2011: 1502.206

Currency   Dec 2006: 749.6  ;  Dec 2011: 1001.5

Required Reserves   Dec 2006: 41.419 ;  Dec 2011: 96.510

Demand Deposits   Dec 2006: 609.9  ;  Dec 2011: 1154.6


a) Measure the money multiplier for Dec 2006, one year prior to the Great Recession. Please conclude all work.

b) Measure the money multiplier for Dec 2011, 5 years hence and a little more than 3 years after the Fed got the authority to pay interest on excess reserves. See the Federal Reserve's press release.

Posted Date: 3/20/2013 6:24:07 AM | Location : United States







Related Discussions:- Authority to pay interest, Assignment Help, Ask Question on Authority to pay interest, Get Answer, Expert's Help, Authority to pay interest Discussions

Write discussion on Authority to pay interest
Your posts are moderated
Related Questions
an online supermarket that sells food and other daily necessary in Malaysia such as Tesco and Giant. User can use this database to do grocery shopping online without going to the s

accessibility to rawmaterial

Define the answer which are given below: a) Define sustainable management in your own words. b) Are Weyerhaeuser's sustainability goals comprehensive enough to give fairly de

Explain the strategic MIS categories in detail.



Researches are now saying that efforts to simplify work tasks have negative results for both companies as well as employees. Do you agree? Why/Why not?


Diagram of different species of phylum coelenterata

how did the industrail revelution increase the need of formal theroy