Question

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.

Business   Economics   
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Homework Answers

Answer #1

Ans: $6,784 billion

Explanation:

M1 = Currency + Transaction deposits + Traveler's checks outside banks and thrifts

      = 555 + 986 + 8

      = $1,549 billion

M2 = M1 + Savings and money market deposit accounts + Small-denomination time deposits + Noninstitution money market mutual funds

      = 1549 + 2929 + 1532 + 774

      = $6,784

Note: Institution-only money market mutual funds are included in M3.

      =

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