Use the following information to calculate the M1 money supply, the M2 money supply, the monetary base, total bank reserves, required bank reserves, excess bank reserves and the M2 money multiplier. Assume that the required reserve ratio for all customer deposits (checking + savings) is 20%.
Checking accounts: $60
Cash held by banks (vault cash) $80
Cash held by businesses and households $40
Deposits from banks at the central bank $130
Savings accounts $14
M1 Money Supply:
Total Bank Reserves:
M2 Money Supply:
Required Bank Reserves:
Excess Bank Reserves:
M2 Money Multiplier:
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