I NEED AN ECONOMY ASSIGNMENT DONE IN ONE DAY. THANKS

I’VE ATTACHED THE CHAPTERS THAT CAN HELP YOU COMPLETE THIS ASSIGNMENT. THANKS 1. (Fiat Money) Most economists believe that the better fiat money serves as a store of value, the more acceptable it is. What does this statement mean? How could people lose faith in money? 2. (The Value of Money) When the value of money was based on its gold content, new discoveries of gold were frequently followed by periods of inflation. Explain. 3. (Depository Institutions) What is a depository institution, and what types of depository institutions are found in the United States? How do they act as intermediaries between savers and borrowers? Why do they play this role? 4. (Federal Reserve System) What are the main powers and responsibilities of the Federal Reserve System? 5. (Bank Deregulation) Some economists argue that deregulating the interest rates that could be paid on deposits combined with deposit insurance led to the insolvency of many depository institutions. On what basis do they make such an argument? 6. (Functions of Money) What are the three important functions of money? Define each of them. 7. (Commodity Money) Early in U.S. history, tobacco was used as money. If you were a tobacco farmer and had two loads of tobacco that were of different qualities, which would you supply as money and which would you supply for smoking? Under what conditions would you use both types of tobacco for money? 8. (Monetary Aggregates) Calculate M1 and M2 using the following information: Large-denomination time deposits $ 304 billion Currency and coin held by nonbanking public 438 billion Checkable deposits 509 billion Small-denomination time deposits 198 billion Traveler’s checks 18 billion Savings deposits 326 billion Money market mutual fund accounts 637 billion 9. (Reserve Accounts) Suppose that a bank’s customer deposits $4,000 in her checking account. The required reserve ratio is 0.25. What are the required reserves on this new deposit? What is the largest loan that the bank can make on the basis of the new deposit? If the bank chooses to hold reserves of $3,000 on the new deposit, what are the excess reserves on the deposit? 10. (Money Multiplier) Suppose that the Federal Reserve lowers the required reserve ratio from 0.10 to 0.05. How does this affect the simple money multiplier, assuming that excess reserves are held to zero and there are no currency leakages? What are the money multipliers for required reserve ratios of 0.15 and 0.20? 11. (Money Creation) Show how each of the following would initially affect a bank’s assets and liabilities. a. Someone makes a $10,000 deposit into a checking account. b. A bank makes a loan of $1,000 by establishing a checking account for $1,000. c. The loan described in part (b) is spent. d. A bank must write off a loan because the borrower defaults. 12. (Money Creation) Show how each of the following initially affects bank assets, liabilities, and reserves. Do not include the results of bank behavior resulting from the Fed’s actions. Assume a required reserve ratio of 0.05. a. The Fed purchases $10 million worth of U.S. government bonds from a bank. b. The Fed loans $5 million to a bank. c. The Fed raises the required reserve ratio to 0.10. 13. (Monetary Control) Suppose the money supply is currently $500 billion and the Fed wishes to increase it by $100 billion. a. Given a required reserve ratio of 0.25, what should it do? b. If it decided to change the money supply by changing the required reserve ratio, what change should it make? 14. (Money Aggregates) What portion of U.S. Federal Reserve notes circulate outside the United States? How does this affect the United States? 15. (Creating Money) Often it is claimed that banks create money by making loans. How can commercial banks create money? Is the government the only institution that can legally create money? 16. (Monetary Policy and an Expansionary Gap) Suppose the Fed wishes to use monetary policy to close an expansionary gap. Should the Fed increase or decrease the money supply? If the Fed uses open-market operations, should it buy or sell government securities? 17. (Money Supply Versus Interest Rate Targets) Assume that the economy’s real GDP is growing. What will happen to money demand over time? If the Fed leaves the money supply unchanged, what will happen to the interest rate over time? If the Fed changes the money supply to match the change in money demand, what will happen to the interest rate over time?