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This Question: 1 pt 2 of 15 (1 complete Using the information below compute the M2 money supply Category Currency and coin he
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M2 is a measure of the money supply that includes all elements of M1 as well as "near money." M1 includes cash and checking deposits, while near money refers to savings deposits, money market securities, mutual funds and other time deposits.

Currency and coin held by the public $700 – M1

Checking account balances $1000 – M1

Travellers check $10 – M1

M1= $700 + $1000 +10+$1710.

M2 = M1 + the following

Savings account balances $2,600- M2

Small denomination time deposits $5000- M2

Money market deposit accounts in banks $1000 – M2

Noninstitutional money market fund shares $2,000- M2

M2= $1710 + $2600 + $5000 + $1000 + $2000=$12,310.

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