Question

Currency $1,000 Checking Account Balances $2,000 Savings Account Balances $5,000 Small-Denomination Time Deposits $6,000 Non-Institutional Money Market Fund Shares $7,000 Consider the information above from 2019 and assume there are no traveler's checks. Calculate M1.

Answer 1

M1 = $3000

Step-by-step explanation:

Below is the given values:

Given the currency = $1000

The balance of checking account = $2000

In order to find the M1, just add the balances of currency and balances of the checking account.

Thus M1 = Currency + Balance of checking account

M1 = 1000 + 2000

M1 = 3000

Therefore, the M1 = $3000