Using the data in the table, compute the M1 money stock. (Enter your responses rounded to one decimal place.)
Currency Component of M1=$2,236.4 billion.
Demand Deposits: Total=$4,999.3 billion.
Small Denomination Deposits=$754.3 billion.
Other Checkable Deposits=$11,370.5 billion.
M1 Money Stock =$---? billion.
To compute the M1 money stock, you need to add the currency component of M1 and the demand deposits.
M1 Money Stock = Currency Component of M1 + Demand Deposits
M1 Money Stock = $2,236.4 billion + $4,999.3 billion
M1 Money Stock = $7,235.7 billion
Therefore, the M1 money stock is $7,235.7 billion.
wrong answer. The M1 money stock is the sum of three components. Which of the four components in the table are part of M1?
I apologize for the previous incorrect response. The M1 money stock is composed of the currency component of M1, demand deposits, and other checkable deposits.
M1 Money Stock = Currency Component of M1 + Demand Deposits + Other Checkable Deposits
M1 Money Stock = $2,236.4 billion + $4,999.3 billion + $11,370.5 billion
M1 Money Stock = $18,606.2 billion
Therefore, the M1 money stock is $18,606.2 billion.
Based on the data above,
---is 61.11% of M1.
a. Currency
b. Demand Deposits
c. Other Checkable Deposits
To determine which component is 61.11% of the M1 money stock, we first need to calculate the value of the M1 money stock.
M1 Money Stock = Currency Component of M1 + Demand Deposits + Other Checkable Deposits
M1 Money Stock = $2,236.4 billion + $4,999.3 billion + $11,370.5 billion
M1 Money Stock = $18,606.2 billion
Now, we can calculate the percentage for each component:
a. Currency Component of M1 as a percentage of M1 = ($2,236.4 billion / $18,606.2 billion) * 100 = 12.02%
b. Demand Deposits as a percentage of M1 = ($4,999.3 billion / $18,606.2 billion) * 100 = 26.88%
c. Other Checkable Deposits as a percentage of M1 = ($11,370.5 billion / $18,606.2 billion) * 100 = 61.10%
Therefore, the correct answer is c. Other Checkable Deposits, which is 61.10% of the M1 money stock.
To compute the M1 money stock, we need to sum up the currency component of M1 and the demand deposits.
Currency Component of M1 = $2,236.4 billion.
Demand Deposits: Total = $4,999.3 billion.
M1 Money Stock = Currency Component of M1 + Demand Deposits
M1 Money Stock = $2,236.4 billion + $4,999.3 billion
M1 Money Stock = $7,235.7 billion
To compute the M1 money stock, we need to add the different components of M1 together. In this case, M1 consists of currency, demand deposits, small denomination deposits, and other checkable deposits.
Given:
Currency Component of M1 = $2,236.4 billion
Demand Deposits: Total = $4,999.3 billion
Small Denomination Deposits = $754.3 billion
Other Checkable Deposits = $11,370.5 billion
To find the M1 money stock, add the values of all the components:
M1 Money Stock = Currency Component of M1 + Demand Deposits + Small Denomination Deposits + Other Checkable Deposits
M1 Money Stock = $2,236.4 billion + $4,999.3 billion + $754.3 billion + $11,370.5 billion
Calculating the total:
M1 Money Stock = $19,360.5 billion
Therefore, the M1 money stock is $19,360.5 billion.