TM 4 determinant money supply ch 16 part 2 (contoh soal 1)

Summary

The transcript covers a detailed discussion on banking concepts, focusing on the calculation and implications of money supply, reserve requirements, and the multiplier effect. Key topics include how changes in interest rates (from 10% to 15%) impact the money supply, with calculations showing how these adjustments influence the bank's ability to circulate funds. The conversation also addresses depositor decisions, reserve ratios, and liquidity, explaining their role in shaping economic activity. Participants engage in practical exercises to calculate these variables and understand the broader implications of monetary policy decisions on the economy.

Takeaways

• 😀 The script involves discussions about financial ratios, specifically focusing on calculating 'm kecil' (small m) using different formulas and scenarios.
• 😀 The importance of understanding how changes in rates (e.g., increasing from 10% to 15%) can affect financial calculations and the multiplier is emphasized.
• 😀 The multiplier in this context is noted to be 2.5, showing how changes in economic rates influence the amount of money created in the system.
• 😀 When the Federal Reserve raises interest rates, it decreases the amount of money circulating in the economy, which impacts the money multiplier and system liquidity.
• 😀 The script emphasizes the significance of understanding the financial 'realm' or 'domain' when applying formulas, whether for depositors, banks, or other financial actors.
• 😀 The discussion includes the idea that lower rates can increase the amount of money that can be created by the banking system, as more money is available for transactions.
• 😀 The formula discussed involves calculating 'm kecil' by dividing the large amount of money by the total amount of money in the system.
• 😀 A key point is that when 'C' (a specific variable related to the system) increases, it leads to a decrease in the amount of money that can be created, affecting the multiplier.
• 😀 The script encourages hands-on learning through problem-solving, as individuals are asked to calculate and verify the results, further reinforcing the learning process.
• 😀 Overall, the lesson is about understanding the effects of economic decisions, such as interest rate changes, on the broader financial system and its ability to create or limit money flow.

Q & A

What is the significance of 'm kecil' (small m) in the script?

'M kecil' refers to a value that needs to be calculated in relation to a formula mentioned in the script. It is part of a larger calculation involving mathematical concepts like ratios and multipliers.

How does the Federal Reserve's decision to raise interest rates affect 'm kecil'?

Raising the interest rate from 10% to 15% causes 'm kecil' to decrease. This is because a higher interest rate reduces the amount of money in circulation, leading to a reduction in the multiplier effect.

What happens to 'm kecil' if the interest rate is lowered?

When the interest rate is lowered, 'm kecil' increases. This is because a lower interest rate allows more money to circulate, increasing the multiplier effect.

What role do depositors play in the system described in the transcript?

Depositors play a key role in the banking system as their decisions influence the reserve deposits. If depositors hold more money in banks, the ability of banks to lend and create money increases.

What is the significance of the term 'karonsih rasio' (carrying ratio)?

The 'karonsih rasio' refers to the ratio of money that banks are able to lend or create based on the money deposited. It is closely linked to the reserve ratio and helps determine how much money circulates within the economy.

Why does a higher 'karonsih rasio' lead to a lower multiplier?

A higher 'karonsih rasio' means that banks are holding onto more reserves and lending out less money, which reduces the ability of the banking system to multiply money. This results in a lower multiplier effect.

What is meant by the 'multiplier effect' in the context of the script?

The multiplier effect refers to how an initial deposit or amount of money can be 'multiplied' by the banking system through lending and the circulation of money. It is influenced by factors like interest rates and reserve ratios.

How does the 'required reservation' affect the banking system?

The 'required reservation' is the minimum amount of money banks must hold in reserve. This influences how much money banks can lend out. If the required reservation is higher, banks can lend out less money, reducing the money supply.

What happens when 'C' (cash) in the system increases?

When 'C' (cash) increases, it leads to an increase in the multiplier, meaning more money is available in the system for lending and economic transactions.

What is the purpose of increasing or decreasing the interest rates according to the transcript?

The purpose of changing interest rates is to control the amount of money circulating in the economy. Increasing rates reduces the multiplier effect, while decreasing rates encourages more money circulation and increases the multiplier.