Given the following information, what are the values of M1 and M2? Small time deposits $750 billion Demand deposits and other $420 billion checkable deposits Savings deposits $700 billion Money market mutual $1,550 billion funds Travelers' checks $25 billion Large time deposits $2,200 billion Currency $300 billion Miscellaneous categories in $60 billion M2 Suppose large time deposits of $1,200 billion mature and people decide to deposit $180 billion of this amount in checking accounts, $800 billion in savings accounts, and the remaining amount in money market mutual funds. How do these actions affect M1 and M2?
Given the following information, what are the values of M1 and M2? Small time deposits $750 billion Demand deposits and other $420 billion checkable deposits Savings deposits $700 billion Money market mutual $1,550 billion funds Travelers' checks $25 billion Large time deposits $2,200 billion Currency $300 billion Miscellaneous categories in $60 billion M2 Suppose large time deposits of $1,200 billion mature and people decide to deposit $180 billion of this amount in checking accounts, $800 billion in savings accounts, and the remaining amount in money market mutual funds. How do these actions affect M1 and M2?
Chapter14: Banking And The Money Supply
Section: Chapter Questions
Problem 1.2P
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