If currency outside of banks is $800 billion;traveler's checks are $10 billion;checkable deposits owned by individuals and businesses are $700 billion;savings deposits are $4,000 billion;small time deposits are $1,000 billion;and money market funds and other deposits are $800 billion,then M2 equals ________ billion.
A)$7,310
B)$5,800
C)$2,510
D)$1,510
E)$710

Question

Quizplus · Accepted Answer

M2 includes currency outside banks, traveler's checks, checkable deposits, savings deposits, small time deposits, and money market funds. Adding these: $800B + $10B + $700B + $4,000B + $1,000B + $800B = $7,310 billion.

If Currency Outside of Banks Is $800 Billion;traveler's Checks Are