Question

Considering the following data​ (expressed in billions of U.S.​ dollars), calculate M1 and M2.

Item Transactions deposits Savings deposits Small-denomination time deposits Money market deposit accounts Noninstitution mon

M1 is $ billion. ​(Enter your response as a whole​ number.)

M2 is ​$ billion. ​(Enter your response as a whole​ number.)

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Answer #1

ANSWER:

1) M1 = Currency + Travelers checks + Transaction deposits = 1,070 + 20 + 1,040 = 2,130

2) M2 = m1 + small denomination time deposits + money market mutual funds + saving deposits = 2,130 + 1,460 + 1,920 + 3,320 = 8,830

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