Question

Compute M1 and M2 given the following data (3pts):
Money market mutual funds $250B
Traveler’s checks $10B
Cash on Hand $2525B
Dollars held by European Central Bank $250B
Cash held by the Federal Reserve $700B
Vault Cash at Banks $300B
Small time deposits $350B
Savings-type accounts $225B
Checking deposits $450B
Bank Holdings of foreign currency $320B
Bank Reserves at the Fed $1600B
Corporate shares held by public $1200B
Corporate shares held by banks $1700B
M2:______________

Answer 1

Calculating M1 and M2

M1 Components of GDP :

Cash on Hand + Traveler’s checks + Checking deposits

= $2525  + $10 + $450

= $2,985 Billions

M2 Including M1 additional :

Small time deposits + Savings-type accounts + Money market mutual funds

= $350 + $225 + $250

= $825 Billions

M1 Components of GDP + M2 Including

= $2,985 Billions + $825 Billions

= $3810 Billions

M2 = $3810 Billions

PLEASE.....UPVOTE....ITS REALLY HELPS ME....THANK YOU....SOOO MUCH....