The economy of Torania has an M2 equal to $4500.00. If money market funds total $120.00,savings accounts total $2500.00, and time depositstotal $220.00, what does M1 equal?

To find M1, we need to consider the components of M2 that are included in M1. M1 consists of…

Answered: The economy of Torania has an M2 equal…

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter25: Money, Banking, And The Federal Reserve System

Section: Chapter Questions

Problem 7P

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Similar questions

If you take 100 out of your piggy bank and deposit it in your checking account, how did M1 change? Did M2 change?
For the following list of items, indicate If they are in M1, M2, or neither: Your 5,000 line of credit on your Bank of America card 50 dollars worth of travelers checks you have not used yet 1 in quarters in your pocket 1200 in your checking account 2000 you have in a money market account
Your answer is incorrect. The economy of Greatstown currently has $60.00 million worth of currency in circulation, $2.00 million worth of traveler's checks, $5.00 million in small time-deposits, and $30.00 million in savings deposits. Total M1 is equal to $120.00 million. Calculate the amount of checkable deposits in Greatstown: 58000000
If you have kept savings in a retail money market fund, and you withdraw funds that are then deposited in your checking account, which of the following is true? Both M1 and M2 decrease. Both M1 and M2 increase. M1 stays the same and M2 increases. O M1 increases and M2 stays the same.
For the following list of items, indicate if they are in M1, M2, or neither: a. Your $5,000 line of credit on your Bank of America card b. $50 dollars’ worth of traveler’s checks you have not used yet c. $1 in quarters in your pocket d. $1200 in your checking account e. $2000 you have in a money market account
Calculate M1 and M2 using details from the table given below. Value (in millions) Currency $80 Checkable deposits 30 Traveler's checks 15 Savings deposits 120 Small-denomination time deposits 80 Money market mutual funds 50

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The economy of Torania has an M2 equal to $ 4500.00. If money market funds total $120.00, savings accounts total $2500.00, and time deposits total $220.00, what does M1 equal?