Learning Goal: I’m working on a macro economics exercise and need guidance to help me learn.I. Measures of Money Supply:Q.1. Suppose the country X has the following monetary asset information as of year 2010:Cash in hands of the public = $300b (where ‘b’ represents billion)Demand Deposits (DD) = $400bOther Checkable Deposits = $150bTraveler’s checks = $50bSavings Type accounts = $2000bMoney Market Mutual Funds (MMMF) = $1000bSmall Time Deposits = $500bLarge Time Deposits = $450b(a) Calculate M1 for Country X (b) Calculate M2 for Country X(c) Which item is not included in the calculations of M1 and M2? 2. Given the following information, what would be the value of M1?Small time deposits$650 billionChecking deposits$300 billionSavings-type accounts$750 billionMoney market mutual funds$600 billionTravelers’ checks$ 25 billionLarge time deposits$600 billionCash in hand$100 billion II. Creation of Money:Q-1 Suppose that the T- account for Sovereign Bank is as follows and the reserve requirements ratio is 20%ASSETS LIABILITIESCash Reserves $ 1,000 Demand Deposits $5,000Loans $ 4,000 $ 5,000 $5,000a)What is the size of the money multiplier?b)With the present required ratio how much total money banking system can create?2. Given the balance sheet below and assuming a required reserve ratio of 20 percent, how much (in dollar terms) must the bank hold in required reserves?AssetsLiabilities and Net WorthProperty$ 5 million Demand deposits$ 80 million Government bonds$10 million Vault cash$15 million Deposited in$20 million Net worth$ 20 million Federal Reserve accountsLoans$50 millionTOTAL LIABILITIESTOTAL ASSETS$100 million PLUS NET WORTH$100 million 3. If the required reserve ratio is 0.2, and a bank has $100 million in demand deposits and $40 million in property and buildings, how much reserves it needs to hold?