Calculate m1 and m2 using details

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Reference no: EM131171272

Calculate M1 and M2 using details from the table given below.

 

Value (in millions)

Currency

$75

Checkable deposits

50

Traveler's checks

100

Savings deposits

125

Small-denomination time deposits

185

Non- institutional money market mutual fund shares

50

Money market deposit accounts

25

If you deposit $8,000 in a bank, calculate how much the bank must keep as required reserves and how much it can loan out if the required reserve ratio was 5percent. If it was 8 percent? 13 percent? 26 percent?

Reference no: EM131171272

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