Question

In January 2016​, currency held by individuals and businesses and​ traveler's checks was ​$1,347 ​billion; checkable deposits owned by individuals and businesses were ​$1,764 ​billion; savings deposits were ​$8,189 ​billion; small time deposits were ​$400 ​billion; and money market funds and other deposits were ​$709 billion. Calculate savings deposits in January 2016.

Answer 1

`M_1 = $3111`

`M_2 = $12409`

Step-by-step explanation:

Given data:

Amount of currency held = $1347 billion

checkable deposit $1347 billion

saving deposit $8189 billion

small time deposit $400 billion

market fund $709 billion

Saving deposit in the form M2 and M1

M_1 = currency held as individual and traveller check + checkable deposit

= $1347 + $1764

`M_1 = $3111`

M_2 = M_1 + saving deposit _ time deposit + maket funds

= $3111 + $8189 + $400 + $709

`M_2 = $12409`