Question

Given the following information, what are the values of M1 and M2? Small time deposits $650 billion Demand deposits and other checkable deposits $300 billion Savings deposits $750 billion Money market mutual funds $600 billion Traveler's checks $25 billion Large time deposits $600 billion Currency $100 billion Miscellaneous categories in M2 $25 billion

Answer 1

Not sure

Step-by-step explanation:

Not sure

Answer 2

Answer: The answer is as follows:

Step-by-step explanation:

M1 is more liquefied than the M2.

M1 consists of:

Demand deposits and other checkable deposits + Traveler's checks + Currency

= 300 + 25 + 100

= $425 billion

In M2 , M1 is also a part of M2.

M2 consists of :

M1 + Small time deposits + Savings deposits + Large time deposits + Miscellaneous categories

425 + $650 + $750 + $600 + 25

= $2450 Billion