Posted by Jason on .
Determine the size of the M1 money supply using the following information.
Currency $700 billion
Money market mutual funds $2,000 billion
Demand deposits $300 billion
Other checkable deposits $300 billion
Traveler’s checks $10 billion
Principles of Finance -
Since M1 = currency + demand deposits + traveler's check + other checkable deposits
therefore as er the information given in the question,
M1 = 700+ 300 + 10 + 300 = $1410 billion.