Question

Suppose that there is $40,000 in checking accounts, $100,000 in savings accounts, $500,000 in cash and coins, $25,000 in traveler's checks, $0 in small-time deposits (such as CDs), $400,000 in the stock market, and $15,000 in money market mutual funds. Solve for M2.

Question 5 options:

	a) $140,000
	b) $550,000
	c) $680,000
	d) None of the above

Answer 1

Answer

M2=checking accounts+ savings accounts+cash and coins+ traveler's checks+small-time deposits+money market mutual fund

=40000+100000+500000+25000+0+15000

=680000

the M2 is $680000

Option c