Section - C
Answer the following question.
25.
Suppose,
Currency in circulation = $20,000
Money market mutual funds held by institutions = $2,500
Large denomination time deposits = $4,000
Small denomination time deposits = $2,000
Travelers' checks = $500
Demand deposits and other checkable deposits = $25,000
Savings deposits = $12,000
Other less liquid assets = $1,500
Money market mutual funds held by individuals = $2,200
(A) Compute M1?
(B) Compute M2?
(C) Compute M3?
Show your calculations for each answer.