please answer both of them. good rating later on.
1. The Fed's two definitions of the money supply (M1 and M2) have a different focus and function. What distinguishes the two definitions and why do we need both?
2. What is the Common Equity Capital Ratio for a bank with owners' common equity of $3 million and total assets of $50 million? What other factor(s) should regulators consider in evaluating the capital adequacy of the bank?