Table: Money Supply Components $$\begin{array} { l l }
\hline \text { Reserves held by banks at the Fed } & \$ 120 \text { billion } \
\text { Currency } & \$ 800 \text { billion } \
\text { Checkable deposits } & \$ 650 \text { billion } \
\text { Savings deposits } & \$ 375 \text { billion } \
\text { Small-time deposits } & \$ 957 \text { billion } \
\text { Money market mutual funds } & \$ 486 \text { billion } \
\hline
\end{array}$$ Refer to the table. According to the data in the table, the total amount of M1 equals:
A) $920 billion.
B) $1,450 billion.
C) $3,268 billion.
D) $3,388 billion.

Question

Table: Money Supply Components $$\begin{array} { l l } 
\hline \text { Reserves held by banks at the Fed } & \$ 120 \text { billion } \
\text { Currency } & \$ 800 \text { billion } \
\text { Checkable deposits } & \$ 650 \text { billion } \
\text { Savings deposits } & \$ 375 \text { billion } \
\text { Small-time deposits } & \$ 957 \text { billion } \
\text { Money market mutual funds } & \$ 486 \text { billion } \
\hline
\end{array}$$ Refer to the table. According to the data in the table, the total amount of M1 equals:
A) $920 billion.
B) $1,450 billion.
C) $3,268 billion.
D) $3,388 billion.

Quizplus · Accepted Answer

M1 includes currency and checkable deposits. Therefore, M1 = $800 billion (currency) + $650 billion (checkable deposits) = $1,450 billion.

Table: Money Supply Components Refer to the Table