monetary aggregates(in billions) currency in circulation $500 money market funds
ID: 1197541 • Letter: M
Question
monetary aggregates(in billions)
currency in circulation $500
money market funds $550
time deposits $800
savings deposits $1110
checkable bank deposits $380
travelers checks $15
american express gift cards $25
The value of M1 is ________ and the value of M2 is ________:
$880 billion; $2805 billion.
$895 billion; $3355 billion.
$895 billion; $2460 billion.
$920 billion; $2005 billion.
a.$880 billion; $2805 billion.
b.$895 billion; $3355 billion.
c.$895 billion; $2460 billion.
d.$920 billion; $2005 billion.
Explanation / Answer
M1 includes currency in circulation, demand deposits (checking accounts), and traveler’s checks. $500 + $380 + $15 = $895 billion.
M2 includes M1, money market accounts, savings, and short-term time deposits. Since time deposits doesn’t indicate a time here, we can assume they mean short-term. $895 + $550 + $800 + $1110 = $3355 billion.
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