Calculating reserves, monetary base, and M2
Given a central bank has gold, foreign exchange, banks' deposits, gov't securities and currency in circulation and the banks had checkable deposits, savings deposits/time deposits, and currency inside the banks which of the above who I use to calculate
a Banks' reserves
The Monetary Base
M2
https://brainmass.com/economics/banking/calculating-reserves-monetary-base-29971
Solution Preview
Banks' reserves = bank deposits at the Fed + currency held in bank = currency inside the banks (in this case)
Monetary Base is the total of currency held by the non-bank public, vault cash held by banks, and Federal Reserve deposits of the banks. This contains the ...
Solution Summary
Monetary Base is defined.
$2.19