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A Bank Has Checking Deposits of $400, Saving Deposits of $900

question 289

Essay

A bank has checking deposits of $400, saving deposits of $900, time deposits of $900, loans of $950, government securities of $900, outstanding credit card balances of $400, currency in its vault of $40, and deposits in its reserve account at the Fed of $40.
a) What is the amount of this bank's deposits that are in M1?
b) What is the amount of this bank's deposits that are in M2?
c) What is the amount of this bank's reserves?


Definitions:

UCR

Unconditioned Response, an automatic response to a stimulus that does not need to be learned.

CR

In conditioning, this stands for conditioned response, which is a learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus.

Classical Conditioning

A pairing technique in behavioral learning where two stimuli are repeatedly combined; a reaction, initially instigated by the second stimulus, is finally instigated by only the first stimulus.

Cognitive Dissonance

A state of mental uneasiness caused by possessing multiple opposing beliefs, ideas, or values concurrently.

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