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https:/bbhosted.cuny.edu/webapps/assessment/take/launchjsp/course assessment id 1087591 18kcourse id- 1405646 1&kcontent; id 33 Remaining Time: 1 hour, 37 seconds. Question Completion Status: $597 818 639 Checkable Deposits (DD) Small Time Deposits (TD) Currency Money Market Mutual Funds Held by Business (MMMF) Savings Deposits (SD) Money Market Mutual Funds Held by Individuals (MMME) 1,046 2.866 979 Refer to the table above The size ofthe M1 Money Supply) is OA $979 bilion ” B $1236 billon C $1,415 billion D $1.618 billion QUESTION 40 Refer to the table above The value of the money included in M2 but not counted in M1is $1 457 bllion

Explanation / Answer

39. The M1 money supply includes very high liquid monies like cash, checkable deposit, travelers check.

M1 = Checkable deposit + Cash (Currency) + Travelers Check

M1 = $597 + $639 +$0 ( billions)

M1 = $1236 billions.

The size of the M1 money supply is $1236 billion.

So, the correct answer is an option (B).

40. M2 money supply constitutes M1 plus savings and time deposits, certificate of deposits and money market mutual funds held by households.

M2 =$1236 + $818 + $2866 + $979 (Billions)

M2 = $5899 Billions.

The total value of M2 money supply is $5899 billion, out of it M1 value is $1236 billion. So, the value of M2 money supply which does not include M1 value is $4663 billion (i.e., [$5899 - $1236] billions).

So, the correct answer is $4663 billion.

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