Consider the following data: savings deposits = $900 billion,currency (held outside banks)= $453 billion,retail money market mutual funds = $1,300 billion,checkable deposits = $525 billion,traveler's checks = $5 billion,small-denomination time deposits = $400 billion.M1 equals __________ billion and M2 equals __________ billion.

Question

Quizplus · Accepted Answer

M1 includes currency, checkable deposits, and traveler's checks, so:
M1 = $453 billion + $525 billion + $5 billion = $983 billion
M2 includes M1 plus savings deposits, retail money market mutual funds, and small-denomination time deposits, so:
M2 = $983 billion + $900 billion + $1,300 billion + $400 billion = $3,583 billion. Therefore, Choice C is the best option.

Consider the Following Data: Savings Deposits = $900 Billion,currency (Held