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Determine the size of the M1 money supply using the following information. Currency $700 billion money market mutual funds $2000 billion demand deposits $300 billion other checkable deposits $300 billion traveler's checks $10 billion. $1,310 billion $3,310 billion 1,410 billion $1,010 billion

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lucariel92

Answer:

M1 is $1,310 billion

Explanation:

I'm rephrasing the question so the informations is clearer:

Determine the size of the M1 money supply using the following information:

  • Currency $700 billion
  • money market mutual funds $2000 billion
  • demand deposits $300 billion
  • other checkable deposits $300 billion
  • traveler's checks $10 billion

Options:

  1. $1,310 billion
  2. $3,310 billion
  3. $1,410 billion
  4. $1,010 billion

Money market mutual funds are not part of M1 so:

Currency $700 billion+demand deposits $300 billion+other checkable deposits $300 billion+traveler's checks $10 billion=$1310 billion M1