Final answer:
To wire funds not on deposit at a credit union, one may bring cash, a certified check, or a cashier's check. For classification within the money supply, a line of credit is neither M1 nor M2; traveler's checks and currency in circulation are M1; and checking accounts and money market accounts are M1 and M2 respectively.
Step-by-step explanation:
If a member wants to wire funds that are not on deposit at the credit union, they must bring either: A. cash, B. a certified check, or C. a cashier's check. The correct answer is D. any of the above. Each of these options provides guaranteed funds, which are required for a wire transfer when the funds are not already on deposit at the credit union.
Now, in regards to the categorization of various items within the money supply:
- M1 money supply includes coins and currency in circulation, as well as checkable deposits. The money in this category is very liquid and can be used readily for transactions.
- M2 money supply includes everything in M1, plus savings deposits, small time deposits, and non-institutional money market funds. M2 is a broader measure of the money supply that accounts for money that can be easily converted to liquid form.
For the given list, here are the categorizations:
- a. Your $5,000 line of credit on your Bank of America card is neither M1 nor M2, as it is a form of credit rather than actual money on deposit.
- b. $50 dollars' worth of traveler's checks you have not used yet is considered part of M1, because traveler's checks are a type of checkable deposit.
- c. $1 in quarters in your pocket is part of M1, as it is currency in circulation.
- d. $1200 in your checking account is part of M1, as it is a demand deposit and therefore falls under checkable deposits which are measured daily by the Federal Reserve System.
- e. $2000 you have in a money market account would be part of M2 because money market accounts are included within this category due to their higher liquidity compared to other forms of savings.