Question

Determine the size of the M1 money supply using the following information. Currency $700 billion money market mutual funds $2000 billion demand deposits $300 billion other checkable deposits $300 billion traveler's checks $10 billion. $1,310 billion $3,310 billion 1,410 billion $1,010 billion

Answer 1

M1 is $1,310 billion

Step-by-step explanation:

I'm rephrasing the question so the informations is clearer:

Determine the size of the M1 money supply using the following information:

• Currency $700 billion
• money market mutual funds $2000 billion
• demand deposits $300 billion
• other checkable deposits $300 billion
• traveler's checks $10 billion

Options:

1. $1,310 billion
2. $3,310 billion
3. $1,410 billion
4. $1,010 billion

Money market mutual funds are not part of M1 so:

Currency $700 billion+demand deposits $300 billion+other checkable deposits $300 billion+traveler's checks $10 billion=$1310 billion M1