Question

Using the information below compute the M1 money supply. Category Amount Currency and coin held by the public ​$ Checking account balances ​$ ​Traveler's checks ​$10 Savings account balances ​$ 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: $2610

Explanation:

Money supply simply means the total amount of money that is in a particular economy at a point in time. Based on the information given, the M1 money supply will be:l the addition of the currency and coin held by the public, the checking account balance and the traveler's checks. This will be:

= $800 + $1800 + $10

= $2610

Therefore, the M1 money supply is $2610.