From reading a paragraph, I gathered following facts.
Bills and coins outside the bank: 175
Checkable deposits 418
savings and time deposits 1782
currency inside bank 28
central bank deposit 186.
so..
the banks reserve is 186+28=214
monetary base: 186 + 175 = 361
M1: 418 + 175 = 593
M2: 593 + 1782 + 186 = 2561
Am I right on above questions?
And also when was the last time the feds implemented the monetary policy by changing the required reserved ratio and/or the discount rate? I tried to googling but came up empty.
The symbols you have used are not clear. However, if the M2 means the bank created money, the you are wrong in determining the M2. M2 in that case will be determined by primary deposite multiplied by the 1/cash reserve ratio.
Anne is correct. M1 refers to the common definition of money as cash+demand deposits. M2 is a broader definition that includes certain highly liquid "time" deposits such as savings accounts.
Based on the information provided, let's verify the calculations one by one:
1. Bank's reserve: The sum of the currency inside the bank and the central bank deposit is equal to 28 + 186 = 214. So, your calculation for the bank's reserve is correct.
2. Monetary base: The monetary base is the sum of currency outside the bank and the bank's reserve. Here, you have mentioned that the currency outside the bank is 175, and the bank's reserve is 214. However, in your calculation, you have added 186 to the currency outside the bank instead of the bank's reserve. Therefore, the correct calculation should be 175 + 214 = 389.
3. M1: M1 refers to the measure of money supply that includes currency in circulation, traveler's checks, and checkable deposits. You mentioned that the checkable deposits are 418, and the currency outside the bank is 175. Thus, the correct calculation for M1 is 418 + 175 = 593. So, you are correct in determining M1.
4. M2: M2 is a broader measure of money supply that includes M1 and other highly liquid assets like savings deposits and time deposits. You mentioned that savings and time deposits amount to 1782, and the central bank deposit is 186. So, the correct calculation for M2 would be 593 (M1) + 1782 (savings and time deposits) + 186 (central bank deposit) = 2561. Therefore, you are right in determining M2.
Regarding your question about the last time the Federal Reserve implemented monetary policy by changing the required reserve ratio or discount rate, it is not possible for me to provide the exact date as the information keeps changing. However, you can try searching for recent news articles, official Federal Reserve announcements, or publications to find the most up-to-date information regarding changes in the required reserve ratio or discount rate.