II.

Solve problems:

1. Calculate the aggregate M2, if cash deposits in banks and deposits in current
accounts are 40 billion UAH, cash -10, short-term government securities-20 billion, and
long-term deposits-15 billion UAH.

M2 = M1+ short-term government securities

M1 = M0 + cash deposits in banks and deposits in current accounts

M0 = cash

M2 = 10 +40+20 = 70 billion UAH

Task 2. Calculate the amount of money needed to service the economy, provided that
cash is equal to 5 billion, cash deposits - in banks on demand and on current accounts -
40 billion, time deposits - 30 billion, government bonds issued worth-25 billion, 5-year
deposits worth-10 billion, and the value of securities in the money market is -15 billion
UAH.

5+40+30+25+10+15 = 125 billion UAH

Task 3. What amount of money is needed for circulation, if the GDP is equal to 2100
billion UAH, the velocity of money is equal to 3 (5, and 10) turnovers.

M×V=P×T

V=3

(M * 3 = P * 2100 ) / 3

M = P * 700

V=5

(M * 5 = P * 2100 ) / 5

M = P * 420

V=7

(M * 7 = P * 2100 ) / 7
M = P * 300

4. What amount of money is needed for circulation, if the sum of the prices of all goods
is equal to 800 million UAH, the sum of the prices of the goods sold on credit is 200
million, payments which term has already come - 100 million, mutual payments - 100
million currency is equal to 6.

Money supply = (800 – 200 + 100 -100) / 6 = 600/ 6 = 100 million UAH