A Bank Has $250 in Checking Deposits, $1,000 in Savings

Multiple Choice

A bank has $250 in checking deposits, $1,000 in savings deposits, $1,200 in time deposits, $1,000 in loans to businesses, $400 in outstanding credit card balances, $800 in government securities, $25 in currency in its vault, and $25 in deposits at the Fed. Of these,_{--------------------} are part of M2.

A) $2,600
B) $2,200
C) $2,850
D) $3,450
E) $2,450