Principles of Finance

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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.

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