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?