Given the following information, what are the values of M1 and M2? Small time deposits
$1,100 billion
Demand deposits and other checkable deposits
$800 billion
Savings deposits
$1,350 billion
Money market mutual funds
$900 billion
Traveler's checks
$30 billion
Large time deposits
$750 billion
Currency
$150 billion
Miscellaneous categories in M2
$40 billion
A)M1 = $830 billion, M2 = $4,370 billion.
B)M1 = $980 billion, M2 = $4,370 billion.
C)M1 = $980 billion, M2 = $3, 390 billion.
D)M1 = $1,020 billion, M2 = $3,390 billion.

Question

Quizplus · Accepted Answer

M1 includes currency, demand deposits, other checkable deposits, and traveler's checks: $150 billion + $800 billion + $30 billion = $980 billion. M2 includes M1 plus savings deposits, small time deposits, money market mutual funds, and miscellaneous categories: $980 billion + $1,350 billion + $1,100 billion + $900 billion + $40 billion = $4,370 billion.

Given the Following Information, What Are the Values of M1