In an economy, there is $200 million in currency held outside banks, $100 million in traveler's checks, $250 million in currency held inside the banks, $300 million in checking deposits, and $600 million in savings deposits. The value of M1 is _ .

Question

Quizplus · Accepted Answer

M1 includes currency held outside banks, traveler's checks, and checking deposits. Therefore, M1 = $200 million + $100 million + $300 million = $600 million.

In an Economy, There Is $200 Million in Currency Held