Question

Using the information below compute the M1 money supply. Category Amount Currency and coin held by the public ​$600600 Checking account balances ​$1 comma 2001,200 ​Traveler's checks ​$10 Savings account balances ​$2 comma 8002,800 Small denomination time deposits ​$5,000 Money market deposit accounts in banks ​$1,000 Noninstitutional money market fund shares ​$2,000 The M1 money supply is equal​ to: ​$nothing

Answer 1

Answer:

Explanation:

Given the following :

CATEGORY - - - - - - - - - - - - - - - - - - - - AMOUNT

Currency and coin held by the public - - $600

Checking account balances - - - - - - - - - ​$1,200 ​Traveler's checks - - - - - - - - - - - - - - - - - $10 Savings account balances ​ - - - - - - - - - - $2,800 Small denomination time deposits - - - - ​$5,000 Money market deposit accounts in banks ​$1,000 Noninstitutional money market fund shares ​$2,000

The M1 money supply is composed of Traveler's cheque, Checkable deposits, currency and coins.

The M1 money supply is the sum of :

Currency and Coin Held by Public + Checking Account Balances + Traveler's Checks

$(600 + 1,200 + 10) = $1,810