Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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Question
Chapter 27, Problem 5IAPA
To determine
To calculate:
The deposits at bank included in M1, the deposits at bank included in M2, the value of loans of bank, securities and reserves.
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A bank has $500 million in checkable deposits, $600 million in savings deposits, $400 million in small time deposits, $950 million in loans to businesses, $500 million in government securities, $20 million in currency, and $30 million in its reserve account at the Fed. Calculate the bank’s deposits that are part of M1, deposits that are part of M2, the bank’s loans, securities, and reserves.
A bank has the following deposits and assets:
Checkable deposits held by individuals and businesses,
$380
Savings deposits held by individuals and businesses,
$1,280
Small time deposits,
$575
Loans to businesses,
$1,809
Outstanding credit card balances,
$300
Government securities,
$125
Currency in the bank's vault,
$1
Reserve account at the Fed,
$8
Calculate the bank's total deposits, deposits that are part of M1, and deposits that are part of M2.
The bank's total deposits are
$
Deposits that are part of M1 are
$
Deposits that are part of M2 are
$
The First National Bank of Townville has $125,000 in U.S. government securities,
$200,000 in savings accounts, $300,000 in checking accounts, $50,000 in its reserve account at
the Fed, $10,000 of currency in its vault, and loans of $250,000. What is the amount of its
reserves? Show your calculations.
Chapter 27 Solutions
Foundations of Economics (8th Edition)
Ch. 27 - Prob. 1SPPACh. 27 - Prob. 2SPPACh. 27 - Prob. 3SPPACh. 27 - Prob. 4SPPACh. 27 - Prob. 5SPPACh. 27 - Prob. 6SPPACh. 27 - Prob. 7SPPACh. 27 - Prob. 8SPPACh. 27 - Prob. 9SPPACh. 27 - Prob. 10SPPA
Ch. 27 - Prob. 11SPPACh. 27 - Prob. 12SPPACh. 27 - Prob. 13SPPACh. 27 - Prob. 1IAPACh. 27 - Prob. 2IAPACh. 27 - Prob. 3IAPACh. 27 - Prob. 4IAPACh. 27 - Prob. 5IAPACh. 27 - Prob. 6IAPACh. 27 - Prob. 7IAPACh. 27 - Prob. 8IAPACh. 27 - Prob. 9IAPACh. 27 - Prob. 10IAPACh. 27 - Prob. 11IAPACh. 27 - Prob. 1MCQCh. 27 - Prob. 2MCQCh. 27 - Prob. 3MCQCh. 27 - Prob. 4MCQCh. 27 - Prob. 5MCQCh. 27 - Prob. 6MCQCh. 27 - Prob. 7MCQCh. 27 - Prob. 8MCQ
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