Knowee
Questions
Features
Study Tools

Multiple Choice QuestionIf currency is $40m, demand deposits total $120m, notice deposits and personal term deposits are $300 and certificates of deposits are $250m, what is M1?Multiple choice question.$710$40m$460$160m

Question

Multiple Choice QuestionIf currency is 40m,demanddepositstotal40m, demand deposits total 120m, notice deposits and personal term deposits are 300andcertificatesofdepositsare300 and certificates of deposits are 250m, what is M1?Multiple choice question.71071040m460460160m

🧐 Not the exact question you are looking for?Go ask a question

Solution

M1 is a measure of the money supply that includes physical currency and coin, demand deposits, traveler's checks, and other checkable deposits.

In this case, the currency is 40manddemanddepositstotal40m and demand deposits total 120m. Notice deposits, personal term deposits, and certificates of deposits are not included in M1.

So, to calculate M1, we add the currency and demand deposits:

40m(currency)+40m (currency) + 120m (demand deposits) = $160m

Therefore, M1 is $160m.

This problem has been solved

Similar Questions

The money supply term that includes readily available cash, checking and savings accounts, individual money market funds, and certificates of deposit is Blank______.Multiple choice question.M-3M-1M-2

From the list below, select all that are relevant to M1 money.Multiple select question.Currency (coins and paper money) in the hands of the publicChequable deposits in commercial banks and ‘thrift’ or savings institutions on which cheques of any size can be drawn, at any time and as often as desiredShort and medium term deposits which require some time to be drawn

M2 money supply includes which of the following in addition to M1?  A. Foreign currency deposits  B. Post office savings deposits  C. Currency held by public  D. Commercial paper

If bank reserves are 200, the public holds 400 in currency, and the desired reserve/deposit ratio is 0.25, the deposits are ____ and the money supply is _____.Group of answer choices200; 600800; 1200400; 800600; 1000

Which of the following is included in the M1 money supply measure?  A. Currency held by the public  B. Savings deposits  C. Time deposits  D. Money market funds

1/3

Upgrade your grade with Knowee

Get personalized homework help. Review tough concepts in more detail, or go deeper into your topic by exploring other relevant questions.