Final answer:
The $5,000 line of credit is neither M1 nor M2, $50 traveler's checks and $1 in quarters are part of M1, while $1200 in a checking account is also M1, and $2000 in a money market account is part of M2.
Step-by-step explanation:
Items included in M1 and M2 money supplies relate to the liquidity and accessibility of these funds. Here is a breakdown of each item from the list:
a. Your $5,000 line of credit on your Bank of America card is not included in M1 or M2 because it is a form of credit, not actual money that you own.
b. $50 dollars' worth of traveler's checks you have not used yet are considered part of M1, because traveler's checks are a form of checkable deposit.
c. $1 in quarters in your pocket is part of M1 as it is physical currency.
d. $1200 in your checking account is part of M1 because it is a checkable deposit that is readily accessible for transactions.
e. $2000 you have in a money market account could be considered part of M2, as M2 includes all of M1 plus savings deposits, small-denomination time deposits, and non-institutional money market funds.