Final answer:
While the question seems to be asking about a money laundering threshold, it actually refers to the categorization of money into M1 and M2. The threshold for reporting cash transactions for anti-money laundering purposes is generally $10,000. However, the items listed are categorized based on the type of money supply they represent, with some falling into M1, others into M2, and lines of credit not being part of the money supply.
Step-by-step explanation:
The question posed doesn't directly relate to a money laundering threshold but seems to be focused on the concept of money supply. The threshold for mandatory reporting of cash transactions to the financial authorities in many jurisdictions, like the United States, is $10,000. This is related to anti-money laundering (AML) regulations. However, the provided options and additional information seem to diverge into a different area related to the categorization of money supply: M1 and M2.
Here are the categorizations for the given items in terms of money supply:
- The $5,000 line of credit on your Bank of America card is neither M1 nor M2 as it's a form of potential borrowing, not money you currently have.
- $50 dollars' worth of traveler's checks you have not used yet are considered part of M1 since traveler's checks are considered checkable deposits.
- $1 in quarters in your pocket is part of M1 as it is physical currency.
- The $1200 in your checking account is a part of M1, representing liquid funds that are readily available for transactions.
- The $2000 you have in a money market account is included in M2, as M2 encompasses all of M1 plus savings deposits, small time deposits, and non-institutional money market funds.