Which sectors purchased the bulk of treasury securities

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Reference no: EM131208372

Problem Set: Flow of Funds

Using the information on the attached flow of funds statement, answer the following questions. Please put your answers and computations on a separate sheet (s).

1. Complete the following accounts for the household sector.

a. Savings ____________
b. Real Investment ____________
c. Increase in net financial investment ____________
d. Is the household sector a surplus or deficit sector? ____________

2. What was the increase in total liabilities (borrowing) for the household sector?

3. Decompose household borrowing into its major components. Make sure the rounded sum of these components equal to the total liabilities in question 2.

4. Did corporate equities represent a source or use of funds for the household sector?

5. How did the household sector finance total financial assets? (List the components and there dollar amounts. Be sure the rounded sum of components equals the total)

6. Were money market mutual fund shares a source or use of funds for the household sector?

7. Complete the following accounts for the nonfinancial business sector.

a. Savings ____________
b. Real Investment ____________
c. Increase in net financial investment ____________
d. Is the nonfinancial business sector a surplus or deficit sector? ____________

8. For the nonfinancial business sector, was U.S. direct investment abroad a source or use of funds?

9. For the nonfinancial business sector, was foreign direct investment in U.S. a source or use of funds?

10. For the nonfinancial business sector, were checkable deposits and currency a source or use of funds?

11. Was the domestic financial sector a surplus or deficit sector?

12. Complete the following accounts for the domestic financial sector.

a. Savings ____________
b. Real Investment ____________
c. Increase in net financial investment ____________

13. For the domestic financial sector, total financial assets were $3073.8 while total liabilities were $2962.6. How did the domestic financial sector finance the difference of $111.2?

14. Which sectors purchased the bulk of Treasury securities?

15. What percentages of Treasury Securities did individuals and institutions in other countries purchase?

16. Draw the T-accounts for the holdings and issuance of pension entitlements.

17. Consumer credit was a source of funds ($218.4) for the household sector. Which sectors held this credit and how much of it did they hold?

18. For the nonfinancial business sector, corporate equities show a -422.9 source of funds. What is going on here?

19. Find the total amount of corporate and foreign (fgn.) bonds that were supplied to bond market and which sectors purchased them.

20. Under the Rest of the World Sector, U.S. direct investment abroad shows a total source of funds of $268.1. Which sectors provided this direct investment?

Attachment:- Flow_of_Funds_Matrix.pdf

Reference no: EM131208372

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