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?

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Definitions:

Financial Statement Analysis

The process of reviewing and analyzing a company's financial statements to make better economic decisions.

Condemnation

The process by which government or authorized entities can take private property for public use, with compensation to the owner.

Expropriation

The act of a government taking privately owned property to be used for the benefit of the public, usually with compensation.

Environmental Regulation

Rules and standards set by governments or other entities to control activities that impact the environment, aiming to reduce pollution and protect natural resources.