In December 2009,currency was $400 billion,traveler's checks were $5 billion;checkable deposits owned by individuals and businesses were $600 billion,saving deposits were $2,00 billion,time deposits were $1,500 billion;and money market funds were $1,200 billion.What was the M1 in December 2009?
A)M1 = $405 billion
B)M1 = $1,005 billion
C)M1 = $3,005 billion
D)M1 = $3,500 billion
E)M1 = $3,505 billion

Question

Quizplus · Accepted Answer

M1 includes currency, traveler's checks, and checkable deposits owned by individuals and businesses. Therefore, in December 2009, M1 was $400 billion + $5 billion + $600 billion = $1,005 billion. Savings deposits, time deposits, and money market funds are not included in M1.

In December 2009,currency Was $400 Billion,traveler's Checks Were $5 Billion;checkable