Refer to the table. The value of the near monies that are part of M2 is Multiple Choicea. $230.b.$380.c.$390.d.$60. ### Overview of Monetary ComponentsBelow is a table detailing various components of money supply, expressed in dollar amounts.| Component | Value ($) ||------------------------------------------------------------------|-----------|| Money Market Mutual Fund Balances Held by Businesses | 100 || Money Market Mutual Fund Balances Held by Individuals | 230 || Currency in Banks | 10 || Currency in Circulation | 60 || Savings Deposits, Including Money Market Deposit Accounts | 60 || Large-denominated ($100,000 or more) Time Deposits | 180 || Small-denominated ($100,000 or less) Time Deposits | 90 || Checkable Deposits | 70 |### Explanation of Components- **Money Market Mutual Fund Balances**: These are investments that pool together money from individuals or businesses to purchase short-term, low-risk securities.- **Currency in Banks**: Represents physical cash held by banking institutions.- **Currency in Circulation**: Physical cash and coins in the hands of the public.- **Savings Deposits**: Holdings in savings accounts, which may include money market deposit accounts.- **Time Deposits**: Bank deposits that cannot be withdrawn for a certain "term" or period unless a penalty is paid.### Understanding M2Refer to the table above to determine the value of the near monies that are part of the M2 money supply, which includes savings deposits, money market mutual funds held by individuals, and small-denominated time deposits.### Question for Review- Calculate the total value of the near monies that are part of M2, including the relevant components from the table. Select the correct option: - Multiple ChoiceThis information serves as an educational guide to understanding different monetary components and their roles within the M2 monetary aggregate.

The involvement of banking in contemporary economics extends beyond traditional financial institution functions. It represents a dynamic influence actively engaged in distributing financial resources, bolstering the expansion and progress of various sectors within the economy. M2 encompasses a spectrum of financial instruments beyond traditional mediums of exchange, incorporating assets that may not be immediately usable but possess the potential for swift conversion into cash or checking deposits.Now, let's determine the value of assets classified as near money within the M2 category, utilizing the provided data:Hence, option b is correct.The value of near monies that are part of M2 is $380. Accordingly, option B is correct.

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Money Market Mutual Fund Balances Held by Businesses Money Market Mutual Fund Balances Held by Individuals Currency in Banks Currency in Circulation Large-denominated Savings Deposits, Including Money Market Deposit Accounts ($100,000 or more) Time Deposits Small-denominated ($100,000 or less) Time Deposits Checkable Deposits Refer to the table. The value of the near monies that are part of M2 is $ 100 230 10 60 60 180 90 70

Money Market Mutual Fund Balances Held by Businesses Money Market Mutual Fund Balances Held by Individuals Currency in Banks Currency in Circulation Large-denominated Savings Deposits, Including Money Market Deposit Accounts ($100,000 or more) Time Deposits Small-denominated ($100,000 or less) Time Deposits Checkable Deposits Refer to the table. The value of the near monies that are part of M2 is $ 100 230 10 60 60 180 90 70

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Question

Refer to the table. The value of the near monies that are part of M2 is

Multiple Choice

$230.

$380.

$390.

$60.

### Overview of Monetary Components

Below is a table detailing various components of money supply, expressed in dollar amounts.

| Component | Value ($) |
|------------------------------------------------------------------|-----------|
| Money Market Mutual Fund Balances Held by Businesses | 100 |
| Money Market Mutual Fund Balances Held by Individuals | 230 |
| Currency in Banks | 10 |
| Currency in Circulation | 60 |
| Savings Deposits, Including Money Market Deposit Accounts | 60 |
| Large-denominated ($100,000 or more) Time Deposits | 180 |
| Small-denominated ($100,000 or less) Time Deposits | 90 |
| Checkable Deposits | 70 |

### Explanation of Components

- **Money Market Mutual Fund Balances**: These are investments that pool together money from individuals or businesses to purchase short-term, low-risk securities.
- **Currency in Banks**: Represents physical cash held by banking institutions.
- **Currency in Circulation**: Physical cash and coins in the hands of the public.
- **Savings Deposits**: Holdings in savings accounts, which may include money market deposit accounts.
- **Time Deposits**: Bank deposits that cannot be withdrawn for a certain "term" or period unless a penalty is paid.

### Understanding M2

Refer to the table above to determine the value of the near monies that are part of the M2 money supply, which includes savings deposits, money market mutual funds held by individuals, and small-denominated time deposits.

### Question for Review

- Calculate the total value of the near monies that are part of M2, including the relevant components from the table. Select the correct option:
- Multiple Choice

This information serves as an educational guide to understanding different monetary components and their roles within the M2 monetary aggregate.

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