Answered: The table below gives data for a…

Economics (MindTap Course List)

13th Edition

ISBN:9781337617383

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter12: Money, Banking And The Financial System

Section: Chapter Questions

Problem 12QP

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The table below gives data for a hypothetical economy.

Billions

Small time deposits

Credit card balances

Savings deposits, including money-market deposit accounts

Money-market mutual funds held by individuals

Checkable (demand) deposits

Currency in circulation

$1250

1300

1620

905

836

325

What is the value of M1 (in $billions)?

What is the value of M2 (in $billions) ?

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

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