Table: Monetary Aggregates MONETARY AGGREGATES (in billions) Currency in circula
ID: 1214185 • Letter: T
Question
Table: Monetary Aggregates MONETARY AGGREGATES (in billions) Currency in circulation: $500 Money market funds: $550 Time deposits: $800 Savings deposits: $1,100 Checkable bank deposits: $380 Travelers checks: $15 American Express gift cards: $25M2 is: A) $3,355 billion B) $2,005 billion C) $3,340 billion D) $2,805 billion Table: Monetary Aggregates MONETARY AGGREGATES (in billions) Currency in circulation: $500 Money market funds: $550 Time deposits: $800 Savings deposits: $1,100 Checkable bank deposits: $380 Travelers checks: $15 American Express gift cards: $25
M2 is: A) $3,355 billion B) $2,005 billion C) $3,340 billion D) $2,805 billion MONETARY AGGREGATES (in billions) Currency in circulation: $500 Money market funds: $550 Time deposits: $800 Savings deposits: $1,100 Checkable bank deposits: $380 Travelers checks: $15 American Express gift cards: $25
M2 is: A) $3,355 billion B) $2,005 billion C) $3,340 billion D) $2,805 billion
Explanation / Answer
M1 includes currency in circulation, demand deposits (checking accounts), and traveler’s checks. $500 + $380 + $15 = $895 billion.
M2 includes M1, money market accounts, savings, and short-term time deposits. Since time deposits doesn’t indicate a time here, we can assume they mean short-term. $895 + $550 + $800 + $1110 = $3355 billion.
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