Question Set 2 Jane and John Doe live in the United States. Briefly explain whet
ID: 1103474 • Letter: Q
Question
Question Set 2
Jane and John Doe live in the United States. Briefly explain whether each of the following items count as part of the M1 monetary aggregate in the United States:
The dimes and quarters in John Doe’s pocket.
The funds deposited in Jane Doe’s savings account.
The value of stocks and bonds in the Doe’s retirement portfolio.
The value of the bar of gold hidden the Doe’s house.
The funds in the Doe’s joint-checking account.
The Doe’s credit card balance.
The traveler’s checks leftover from the Doe’s trip to Canada.
The Canadian dollars the Does brought back from Canada.
Explanation / Answer
The M1 monetary aggregate includes that money that can be used as a medium of exchange. Example includes paper money, coin, checking account, and demand deposits.
The dimes and quarters in John Doe’s pocket: It is included in the M1 monetary aggregate in the United States.
The funds deposited in Jane Doe’s savings account: It is not included in the M1 monetary aggregate in the United States.
The value of stocks and bonds in the Doe’s retirement portfolio: It is not included in the M1 monetary aggregate in the United States.
The value of the bar of gold hidden the Doe’s house: It is not included in the M1 monetary aggregate in the United States.
The funds in the Doe’s joint-checking account: It is included in the M1 monetary aggregate in the United States.
The Doe’s credit card balance: It is not included in the M1 monetary aggregate in the United States.
The traveler’s checks leftover from the Doe’s trip to Canada: It is included in the M1 monetary aggregate in the United States.
The Canadian dollars the Does brought back from Canada. It is not included in the M1 monetary aggregate in the United States.
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