The information in the table pertains to an imaginary economy. Type of MoneyAmountLarge time deposits$80 billionSmall time deposits$75 billionDemand deposits$75 billionOther checkable deposits$40 billionSavings deposits$10 billionTraveler's checks$1 billionMoney market mutual funds$15 billionCurrency$110 billionCredit card balances$10 billionMiscellaneous categories of M2$25 billion What is the M2 money supply? a.$125 billionb.$296 billionc.$351 billiond.$431 billion

M2 is a component of money supply that included everything in M1 plus some other type of deposits…

Answered: The information in the table pertains…

Economics For Today

10th Edition

ISBN:9781337613040

Author:Tucker

Publisher:Tucker

Chapter25: Money Creation

Section: Chapter Questions

Problem 18SQ

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The information in the table pertains to an imaginary economy.

Type of Money	Amount
Large time deposits	$80 billion
Small time deposits	$75 billion
Demand deposits	$75 billion
Other checkable deposits	$40 billion
Savings deposits	$10 billion
Traveler's checks	$1 billion
Money market mutual funds	$15 billion
Currency	$110 billion
Credit card balances	$10 billion
Miscellaneous categories of M2	$25 billion

What is the M2 money supply?

a.	$125 billion
b.	$296 billion
c.	$351 billion
d.	$431 billion

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

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