Foundations of Economics (8th Edition)
Foundations of Economics (8th Edition)
8th Edition
ISBN: 9780134486819
Author: Robin Bade, Michael Parkin
Publisher: PEARSON
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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.
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