Question

What is the value of M2? Checkable deposits: $400,000,000 Currency: $340,000,000 Traveler's checks: $4,000,000 Money Market...

What is the value of M2?

Checkable deposits: $400,000,000

Currency: $340,000,000

Traveler's checks: $4,000,000

Money Market mutual funds:$50,000000

Small time deposits: $6,000000

Savings deposits: $850,000,000

Homework Answers

Answer #1

Answer : In the economy, money supply is measured by M2 where M1 is the element of M2. Hence to find the value of M2 firstly we have to find the value of M1. We can get the value of M1 by the following way:

M1 = Currency + Checkable deposits + Traveller's check

By putting given values in M1, we have,

M1 = 340000000 + 400000000 + 4000000

=> M1 = $744000000

Now,

M2 = M1 + Money market mutual fund + Small time deposits + saving deposits

By putting values we get,

=> M2 = 744000000 + 50000000 + 6000000 + 850000000

=> M2 = $1650000000

Therefore, the value of M2 is $1650000000.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Item Value ​($ billions) Currency 555 Savings and money market deposit accounts 2,929 ​Small-denomination time deposits...
Item Value ​($ billions) Currency 555 Savings and money market deposit accounts 2,929 ​Small-denomination time deposits 1,532 ​Traveler's checks outside banks and thrifts 8 Noninstitution money market mutual funds 774 ​Institution-only money market mutual funds 209 Transaction deposits 986 Calculate M2.$_______ billion.
Checks are not money because they are just instruments to transfer money between banks. are not...
Checks are not money because they are just instruments to transfer money between banks. are not always accepted when trying to purchase goods or services. can bounce when there are not enough funds to cash them. are not issued by the government. 2 points    QUESTION 17 An official measure of money in the United States is M1, which includes the sum of checkable deposits plus small time deposits. currency plus traveler's checks plus time deposits. currency plus traveler's checks...
In Maldonia in 2019, traveler's checks in circulation were $7 billion; checkable deposits owned by individuals...
In Maldonia in 2019, traveler's checks in circulation were $7 billion; checkable deposits owned by individuals and businesses were $638 billion; M1 was $1,369 billion; money market funds and other deposits were $711 billion; M2 was $6,676; and savings deposits were $3,622 billion. Calculate currency held by individuals and businesses in Maldonia in 2019. Calculate small time deposits in Maldonia in 2019. In Maldonia in 2019, currency held by individuals and businesses was $_____ billion. Small time deposits in Maldonia...
Question 19 Table: Monetary Aggregates (in billions) Currency in circulation $ 100 Checkable deposits $ 300...
Question 19 Table: Monetary Aggregates (in billions) Currency in circulation $ 100 Checkable deposits $ 300 Travelers checks $ 50 Savings deposits $ 75 Small-denomination time deposit $ 700 Money Market Mutual Funds (individuals) $ 500 Large denomination time deposits $ 200 (Table: Monetary Aggregates) Refer to the information in the table above. The money supply measures by M2 is: a. $450 billion b. $1,425 billion c. $1,725 billion d. $2,075 billion
QUESTION 19 In January 2019, currency was $500 billion, traveler's checks were $10 billion; checkable deposits...
QUESTION 19 In January 2019, currency was $500 billion, traveler's checks were $10 billion; checkable deposits owned by individuals and businesses were $800 billion, saving deposits were $2,500 billion, time deposits were $1,900 billion; and money market funds were $1,800 billion. What was M1? $ billion. What was M2? $ billion. 4 points    QUESTION 20 If you deposit $1,000 in cash in your checkable deposit at your bank, the quantity of M1 immediately does not change in size. increases...
a. Which two of the following financial institutions offer checkable deposits included within the M1 money...
a. Which two of the following financial institutions offer checkable deposits included within the M1 money supply? Thrift institutions unanswered Insurance companies unanswered Commercial banks Securities firms Mutual fund companies b. Which of the following items is (are) not included in either M1 or M2? Money market mutual fund balances held by individuals Checkable deposits Small-denominated (less than $100,000) time deposits Money market mutual fund balances held by businesses Currency held by banks Savings deposits unchecked
Which of the following is NOT considered part of M2? a. currency b. checkable deposits c....
Which of the following is NOT considered part of M2? a. currency b. checkable deposits c. money d. traveler’s checks e. credit cards
In an economy, the amount of money held in currency and coins is $3,500, the amount...
In an economy, the amount of money held in currency and coins is $3,500, the amount of money held as traveler's check is $1,000, the amount of money held as checkable deposits is $2,000, the amount of money held in savings deposit is $4,000, and the amount of money held with retailed money market mutual funds is $700. M1 in the economy equals
Compute M1 and M2 given the following data (3pts): Money market mutual funds $250B Traveler’s checks...
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:______________
11. Cash is counted in the money supply as a part of: both M1 and M2....
11. Cash is counted in the money supply as a part of: both M1 and M2. M1 only. M2 only. neither M1 or M2. 12. A bond's price and yield: move in opposite directions. move in the same direction. are usually equal in value. must sum up to 1,000. 13. Barter as a system tends to work only: among large, multinational corporations. in primitive economies with little product variety. in small U.S. towns and villages. when agricultural products are exchanged....