Macroeconomics

1. What are the inherent disadvantages of a barter system ? 2. Calculate M1 and M2 using details from the table given below.

Value (in millions)

Currency $75

Checkable deposits 25

Traveler's checks 10

Savings deposits 125

Small-denomination time deposits 75

money market mutual fund shares 50

3. List and describe the four functions of money. 4. In an essay no less than 300 words, describe how banks can create money.

1. What are the inherent disadvantages of a barter system ? 2. Calculate M1 and M2 using details from the table given below.

Value (in millions)

Currency $75

Checkable deposits 25

Traveler's checks 10

Savings deposits 125

Small-denomination time deposits 75

money market mutual fund shares 50

3. List and describe the four functions of money. 4. In an essay no less than 300 words, describe how banks can create money.