Consider the following data: currency (held outside banks)= $354 billion,checkable deposits = $250 billion,traveler's checks = $4 billion,small-denomination time deposits = $200 billion,savings deposits = $100 billion,retail money market mutual funds = $160 billion.M1 equals __________ billion and M2 equals __________ billion.

Question

Quizplus · Accepted Answer

M1 includes currency held outside banks, checkable deposits, and traveler's checks, which sum to $354 billion + $250 billion + $4 billion = $608 billion. M2 includes all of M1 plus small-denomination time deposits, savings deposits, and retail money market mutual funds, adding up to $608 billion + $200 billion + $100 billion + $160 billion = $1,068 billion.

Consider the Following Data: Currency (Held Outside Banks)= $354 Billion,checkable