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I am stuck on these and not having easy time in homework. Please help. In December 2020, individuals and businesses held $250 billion in currency

I am stuck on these and not having easy time in homework. Please help.

In December 2020, individuals and businesses held

  • $250 billion in currency and no traveler's checks
  • $1,400 billion in checkable deposits
  • $4,100 billion in savings deposits
  • $800 billion in time deposits
  • $400 billion in money market funds and other deposits

In December 2020, banks held

  • $850 billion in currency
  • $500 billion in reserves at the central bank
  • $1,000 billion in loans to households and businesses

Using the information mentioned above, answer the following questions.

  1. Calculate the M1 and M2 measures of money.

M1=2,500 billion

M2=7,800 billion

  1. Calculate the monetary base.

Monetary Base: 1,350 billion

  1. What are the currency drain ratio and the banks' reserve ratio?

  1. What are the M1 and M2 money multipliers?

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