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Money Supply

Money Supply in Hong Kong. Credit Creation & Bank Multiplier. Money Supply. Deposits in DTC. Saving Deposits in LB. Deposits in RLB. Cheque of Demand Deposit. TimeDeposits in LB. Money Supply in Hong Kong. Two Main Functions of Money. Medium of Exchange Store of Value.

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Money Supply

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  1. Money Supply in Hong Kong Credit Creation & Bank Multiplier Money Supply

  2. Deposits in DTC Saving Deposits in LB Deposits in RLB Cheque of Demand Deposit TimeDeposits in LB Money Supply in Hong Kong

  3. Two Main Functions of Money • Medium of Exchange • Store of Value

  4. Cheque of Demand Deposit M1 Medium of Exchange

  5. Saving & Time Deposits in LB M2 M1 Store of Value

  6. Deposits in RLB & DTC M3 M2 M2 Also Store of Value

  7. Money Supply in Hong Kong • M1 • emphasizes the function of medium of exchange • includes the coins & notes in the hand of the public and demand deposits in LB. • M2 • emphasizes the function of store of value • includes M1 and Saving & Time Deposits in LB. • M3 • also emphasizes the function of store of value • includes M2 and Deposits in RLB and DTC.

  8. M1 • Notes & coins in hands of public • Demand deposits with LB

  9. M2 • M1 • Saving and Time Deposit with LB • Negotiable certificates of deposit issued by LB

  10. M3 • M2 • Time Deposit with RLB & DTC • Negotiable certificates of deposit issued by RLB & DTC

  11. P.C. Ed. 1996-97Major Economics • Designed by • Eric Leung $

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