10th attempt Part 1 (1 point) Feedback Use the information in this table to answer the following two questions. Items Billions of $ Savings deposits 7500 Money market mutual funds 700 M2 13700 Checking deposits 2250 Small time deposits 750 How much is M1? $ 4750 billion Part 2 (1 point) Feedback Now, calculate the amount of currency in billions of dollars in the economy from the given information (assume no traveler's checks). $ 2500 billion
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From the table, we have: Checking deposits = 2250 M1 = Currency + Checking deposits + Traveler's checks Since we are not given the amount of currency and traveler's checks, we can't calculate M1 directly from the table. However, we are given that the answer is Show more…
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Type of Money Amount Large time deposits $120 billion Small time deposits $80 billion Demand deposits $300 billion Other checkable deposits $50 billion Savings deposits $65 billion Traveler's checks $5 billion Money market mutual funds $200 billion Currency $150 billion Credit card balances $300 billion Miscellaneous categories of M2 $30 billion Refer to Table 29-2. What is the M2 money supply? a. $1,300 billion b. $580 billion c. $880 billion d. $1,000 billion
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