Final answer:
A car, computer, and savings account are assets, while unpaid utility bills and loan payments are liabilities. In terms of the money supply categories M1 and M2, traveler's checks, quarters, and checking account funds fall under M1, while money in a money market account falls under M2. A line of credit does not fall into either category.
Step-by-step explanation:
Out of the items listed, car, computer, and savings account are considered assets because they represent ownership of value that can be converted into cash. On the other hand, unpaid utility bill and loan payment are liabilities, not assets, as they are obligations to pay money in the future.
Regarding the categories of money supply, M1 includes cash and other liquid monetary instruments that are readily accessible for spending. M2 includes M1 plus short-term time deposits in banks and non-institutional money market funds. Based on this:
- Your $5,000 line of credit on your Bank of America card is neither M1 nor M2 as it represents potential borrowing, not current assets.
- $50 worth of traveler's checks you have not used yet are part of M1.
- $1 in quarters in your pocket is also part of M1.
- $1200 in your checking account is part of M1.
- $2000 you have in a money market account is part of M2.