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In the formula Y = F + VX, Y refers to the
Total Reserves
The sum of a bank's deposits held in reserve at a central bank plus its cash on hand, used to satisfy demand for withdrawals or to meet regulatory requirements.
Interstate Banking
The practice or system allowing banks to operate branches and offer services in more than one state, previously restricted in the U.S.
M2
A measure of the money supply that includes cash, checking deposits, and easily convertible near money, such as savings deposits and money market securities.
M1
A measure of the money supply that includes all physical currency, as well as demand deposits, checking accounts, and other liquid assets easily convertible to cash.
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