The following information is available to you: travelers\' checks = $1 million;

Question

The following information is available to you: travelers' checks = $1 million; coin and paper currency = $30 million; repurchase agreements and Eurodollars = $15 million; demand deposits = $25 million; retail money market mutual finds = $60 million; savings accounts at depository institutions = $40 million; checkable deposits at depository institutions = $35 million; large denomination time deposits = $50 million; institutional money market mutual funds = $65 million; and small denomination time deposits = $45 million. Using Fed definitions, determine the size of the a. M1, b. M2, c. M3

Explanation / Answer

M1 will include : travelers' checks = $1million; coin and paper currency = $30 million; repurchase agreements and Eurodollars = $15 million; demand deposits = $25 million; time deposits = $50 million checkable deposits at depository institutions = $35 million; Total = $156 million (ANSWER) M2 will include : travelers' checks = $1million; coin and paper currency = $30 million; repurchase agreements and Eurodollars = $15 million; demand deposits = $25 million; savings accounts at depository institutions = $40 million; checkable deposits at depository institutions = $35 million; denomination time deposits = $50 million; small-denomination time deposits = $45 million Total = $241 million (answer) M3 will include : travelers' checks = $1million; coin and paper currency = $30 million; repurchase agreements and Eurodollars = $15 million; demand deposits = $25 million; savings accounts at depository institutions = $40 million; checkable deposits at depository institutions = $35 million; institutional money market mutual funds = $65 million; denomination time deposits = $50 million; small-denomination time deposits = $45 million

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.