Should banks have to hold 100% of their deposits

Reference no: EM13751154

1.For the following list of items, indicate if they are in M1, M2, or neither:
1-1)Your $5,000 line of credit on your Bank of America card
1-2)$50 dollars' worth of traveler's checks you have not used yet
1-3)$1 in quarters in your pocket
1-4)$1200 in your checking account
1-5)$2000 you have in a money market account

2.Should banks have to hold 100% of their deposits? Why or why not?

Reference no: EM13751154

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