You have been given the banking and financial data in the following table. Your boss wants you to calculate the M1 money supply (using the U.S. laws and regulations) but forgets to tell you which year the data pertain to. You call your boss and she tells you that the data is for 2021. In that case, you calculate the following for your boss: Currency in Circulation $100 Demand Deposits $1,000 Savings Deposits $4,400 Small Time Deposits (Less than $100,000) $2,000 Large Time Deposits (Greater than $100,000) $4,000 Money Market Mutual Funds Deposits Owned by Individuals $1,000 Money Market Mutual Funds Deposits Owned by Institutions $5,000 Total Reserves in the Banking System $2,100 O a. M1 = $1,000 O b. M1 = $1,100 O c. M1 = $2,200 O d. M1 = $4,300 O e. M1 $5,500
You have been given the banking and financial data in the following table. Your boss wants you to calculate the M1 money supply (using the U.S. laws and regulations) but forgets to tell you which year the data pertain to. You call your boss and she tells you that the data is for 2021. In that case, you calculate the following for your boss: Currency in Circulation $100 Demand Deposits $1,000 Savings Deposits $4,400 Small Time Deposits (Less than $100,000) $2,000 Large Time Deposits (Greater than $100,000) $4,000 Money Market Mutual Funds Deposits Owned by Individuals $1,000 Money Market Mutual Funds Deposits Owned by Institutions $5,000 Total Reserves in the Banking System $2,100 O a. M1 = $1,000 O b. M1 = $1,100 O c. M1 = $2,200 O d. M1 = $4,300 O e. M1 $5,500
Chapter14: Macroeconomic Policy: Tradeoffs, Expectations, Credibility, And Sources Of Business Cycles
Section: Chapter Questions
Problem 8E
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Transcribed Image Text:You have been given the banking and financial data in the following table. Your boss wants you to
calculate the M1 money supply (using the U.S. laws and regulations) but forgets to tell you which
year the data pertain to. You call your boss and she tells you that the data is for 2021. In that case,
you calculate the following for your boss:
Currency in Circulation
$100
Demand Deposits
$1,000
Savings Deposits
$4,400
Small Time Deposits (Less than $100,000)
$2,000
Large Time Deposits (Greater than $100,000)
$4,000
Money Market Mutual Funds Deposits Owned by
Individuals
$1,000
Money Market Mutual Funds Deposits Owned by
Institutions
$5,000
Total Reserves in the Banking System
$2,100
O a. M1 = $1,000
O b. M1 = $1,100
O c. M1 $2,200
=
O d. M1
$4,300
O e. M1 $5,500
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