Final answer:
Two true statements regarding the Banking center are that currency in the public hands and checking deposits are included in both M1 and M2. M1 and M2 are monetary aggregates with M2 being broader and including M1. Banks make money from loans and prefer less cash in the vault to have more for lending.
Step-by-step explanation:
Exploring the statements related to excluded bank transactions in the Banking center, two true statements can be asserted based on the information provided:
- Currency out in the public hands is part of M1 and M2.
- Checking deposits are in M1 and M2.
These two statements are accurate within the context of monetary aggregates. M1 includes currency in public hands and checking deposits, which are the most liquid forms of money. M2 is a broader classification that includes all of M1 plus less liquid forms of money like savings accounts, time deposits, and money market accounts. Understanding how banks handle various types of transactions can be crucial for comprehending monetary policy and banking operations. Banks profit by issuing loans and charging interest, indicating the importance of having lower vault cash to maximize funds available for lending.