(Table: Money Measure Components, January 2019) Based on the table, M1 for January 2019 was
A) $2,262.2 billion.
B) $3,113.4 billion.
C) $3,742.9 billion.
D) $4,594.5billion.

Question

(Table: Money Measure Components, January 2019) Based on the table, M1 for January 2019 was 
A) $2,262.2 billion. 
B) $3,113.4 billion. 
C) $3,742.9 billion. 
D) $4,594.5billion.

Quizplus · Accepted Answer

M1 is the sum of currency (coins and paper money) in circulation outside of the US Treasury, demand deposits (checking accounts), and other checkable deposits. Adding up the components for January 2019, we get: Currency in circulation = $1,723.5 billion; Demand deposits = $1,392.9 billion; Other checkable deposits = $626.5 billion. Summing these amounts, we get M1 = $3,742.9 billion. Therefore, the best choice is C.

(Table: Money Measure Components, January 2019) Based on the Table