1. What are the institutions that make up the banking system?

2. What is a bank’s balancing act?

3. A bank’s deposits and assets are $320 in checkable deposits and $896 in savings deposits held by individuals and businesses; $840 in small time deposits; $990 in loans to businesses; $400 in outstanding credit card balances; $634 in government securities; $2 in currency in the bank’s vault; and $30 in its reserve account at the Fed. 

Calculate the bank’s total deposits, deposits that are part of M1, and deposits that are part of M2.

4. A bank’s deposits and assets are $320 in checkable deposits and $896 in savings deposits held by individuals and businesses; $840 in small time deposits; $990 in loans to businesses; $400 in outstanding credit card balances; $634 in government securities; $2 in currency in the bank’s vault; and $30 in its reserve account at the Fed.

Calculate the bank’s loans, securities, and reserves.