The Above Table Gives Assets and Deposits for a (Small)bank

question 127

Multiple Choice

$\begin{array} { l c } \hline & \begin{array} { c } \text { Amount } \\\text { (dollars) }\end{array} \\\hline \text { Checking deposits } & 600 \\\text { Savings deposits } & 1000 \\\text { Time deposits } & 1,500 \\\text { Loans } & 1,200 \\\text { Government securities } & 2,000 \\\text { Outstanding credit card balances } & 400 \\\text { Currency in vault } & 10 \\\text { Deposits in reserve account at the Fed } & 20 \\\hline\end{array}$
The above table gives assets and deposits for a (small) bank.
-The bank's deposits that are part of M1 are equal to

• A)$30.
• B)$1,600.
• C)$3,100.
• D)$3,130.
• E)$600.

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Definitions:

Real Wage

The purchasing power of wages, adjusted for inflation, reflecting the actual goods and services that can be bought.

Inflation Rate

The measure of inflation through the rising cost of goods and services, which diminishes the power of currency.

Nominal Wage

The wage earned by an employee, expressed in current currency terms, without adjustment for inflation or changes in purchasing power.

Efficiency Wage

A wage set above the market equilibrium by employers in an effort to enhance productivity, attract higher quality employees, and reduce turnover.