Question

The following table lists the amount of funds in each category during May 2020, as reported in the July 2, 2020 Federal Reserve H.6 release - Money Stock and Debt Measures. All numbers are in billions of dollars.

H.6 Money Stock and Debt Measures (July 2, 2020)

Category	Amount (billion $)
Savings Deposits	11,239.4
Demand Deposits	2,166.6
Small-Denomination Time Deposits	545.7
Other Checkable Deposits	1,077.3
Institutional Money Funds	3,323.7
Retail Money Funds	1,196.3
Currency	1,818.7

Based on the above table, the amount that would be counted in M2 for May 2020 is _____ billion dollars.

Select one:

a. 5,062.6

b. 0

c. 3,985.3

d. 12,981.3

e. 18,044.0

f. 16,305.0

g. 21,367.7

Answer 1

M1 is physical money that can be converted into cash easily. It includes currency in circulation + travellers checks + checkable deposits
M2 includes M1 + savings deposits + time deposits + money market funds
M1
	Amount in billions of dollars
Currency	1818.7
Demand Deposits	2,166.60
Other Checkable Deposits	1,077.30
Total M1	5062.6
M2
Savings deposit	11,239.40
Small-Denomination Time Deposits	545.7
Retail Money Funds	1,196.30
Total M2	18044.00
Instutional money funds is M3.
Answer is (e)