You earn $500 a month,currently have $200 in currency,$100 in your checking account,$2,000 in your savings accounts,$3,000 worth of illiquid assets and $1,000 of debt.Using the M1 measure of money,you have

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Quizplus · Accepted Answer

M1 measure of money includes currency, demand deposits (checking accounts), and traveler's checks. In this case, the total M1 money is $300 ($200 currency + $100 checking account). Annual income is $6,000 ($500 x 12 months). Wealth is the total value of assets minus liabilities, which equals $4,300 ($200 currency + $100 checking account + $2,000 savings account + $3,000 illiquid assets - $1,000 debt). Therefore, option B is the correct answer.

You Earn $500 a Month,currently Have $200 in Currency,$100 in Your