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Jackie has the following list of assets: • $45 in coins and currency in her purs

ID: 1254916 • Letter: J

Question

Jackie has the following list of assets:
• $45 in coins and currency in her purse
• A $100 bill in her jewellery box at home
• $1,200 in a savings account in a chartered bank
• $500 in a chequing account in a chartered bank (Jackie never carries her chequebook, however, because she has a debit card that is connected to the chequing account.)
• $500 in a credit union savings account


a. What is the dollar value of Jackie's assets that are considered part of the monetary aggregate M1
b. What is the dollar value of Jackie's assets that are considered part of the monetary aggregate M2 (but not M2+)

Explanation / Answer

Store of Value A commodity, currency or other type of capital that istradable and can be stored for future use. Money in a Market Mutual fund satisfies thisdefinition. Hence , $ 2345 is the correctanswer .