Final answer:
M1 money supply includes currency, traveler's checks, and demand deposits or checking accounts. The items in the list can be classified accordingly.
Step-by-step explanation:
M1 money supply includes currency, traveler's checks, and demand deposits or checking accounts. Based on the provided list of items:
- a. Your $5,000 line of credit on your Bank of America card is neither M1 nor M2 because it is a line of credit, not a deposit or currency.
- b. $50 dollars' worth of traveler's checks you have not used yet is part of M1 because it is considered currency.
- c. $1 in quarters in your pocket is part of M1 since it is considered currency.
- d. $1200 in your checking account is part of M1 since it is considered a demand deposit.
- e. $2000 you have in a money market account is part of M2 since it is a savings deposit in a bank.