(Table: Monetary Aggregates II) Use Table: Monetary Aggregates II. The value of M2 is: Table: Monetary Aggregates II Monetary Aggregates (in billions) Currency in circulation $700 Money market funds 550 Time deposits 800 Savings deposits 1,110 Checkable bank deposits 380 Traveler's checks American Express gift cards 15 25 $3,005 billion. O $3,540 billion. O $3,555 billion. O $2,205 billion.

(Table: Monetary Aggregates II) Use Table: Monetary Aggregates II. The value of M2 is: Table: Monetary Aggregates II Monetary Aggregates (in billions) Currency in circulation $700 Money market funds 550 Time deposits 800 Savings deposits 1,110 Checkable bank deposits 380 Traveler's checks American Express gift cards 15 25 $3,005 billion. O $3,540 billion. O $3,555 billion. O $2,205 billion.

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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Concept explainers

Required Reserve and Excess Reserve Analysis

A required reserve is an amount of cash that banks must keep with themselves, which is certain percentage of the deposits made by their customers. Required reserve is a percentage of the bank's deposits that the respective bank must have on each overnight. The percentage rate is set and determined by the nation’s central bank. It is important to have such funds accumulated to meet its uncertain obligations, sudden liabilities and withdrawals. Required reserve is also known as reserve ratio. Reserve ratio is an important tool to control the money supply.

Question

(Table: Monetary Aggregates II) Use Table: Monetary Aggregates II. The value of M2 is:
Table: Monetary Aggregates II
Monetary Aggregates (in billions)
Currency in circulation
$700
Money market funds
550
Time deposits
800
Savings deposits
1,110
Checkable bank deposits
380
Traveler's checks
15
American Express gift cards
25
O $3,005 billion.
O $3,540 billion.
O $3,555 billion.
O $2,205 billion.

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