12 Consider the following balance sheet of Princeton Bank:

Balance Sheet for Princeton Bank

(amounts in millions of dollars)

Assets Liabilities 1 Capital Reserves 30 Transaction 300 Securities 140 accounts Loans 280 Nontransaction 140 Total assets 450 accounts Capital 10 Total liabilities 450 1 capital Statistics for the economy as a whole are D 5 $2,000 billion R 5 $200 billion C/D 5 0.2 5 ratio of currency to transaction accounts N/D 5 2.0 5 ratio of nontransaction accounts to transaction accounts MMF/D 5 1.6 5 ratio of retail money-market mutual funds to transaction accounts q 5 0.10 5 10 percent 5 required reserve ratio on transaction accounts 5 RR/D 5 ratio of required reserves to transaction accounts a Calculate the monetary base MB, M1, and M2. Are there any excess reserves in Princeton Bank? Are there any excess reserves in the economy as a whole?