Question

If the currency in circulation is $100 million, checkable bank deposits are $500 million, savings deposits are $300 million, and traveler's checks are $10 million, then M1 is:__________

Answer 1

Answer: $610 million

Explanation:

M1 includes currency in circulation, checkable bank deposits and traveler's checks.

M1 = $100 million + $500 million + $10 million = $610 million

Savings deposits is part of M2