Calculation for Bank Reserves

The Second National Bank of Townville has $400,000 in checking deposits, $125,000 in savings deposits, $500,000 in loans, $20,000 in its reserve account at the Fed, and $5,000 of currency in its vault. 

What is the amount of its reserves?

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Calculation for Bank Reserves

The First National Bank of Townville has $125,000 in U.S. government securities, $200,000 in savings accounts, $300,000 in checking accounts, $50,000 in its reserve account at the Fed, $10,000 of currency in its vault, and loans of $250,000. 

What is the amount of its reserves?

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Calculation for M2

If you hold $25 in cash, have $150 in a checking account, and have $250 in a savings account, 

how much of M2 do you have?

#Parkin #11edition #Money #PriceLevel #Inflation #Chapter25