Currency= $150
Coins= 50
Transaction Deposits= 600
Savings Deposits= 450
Traveler's check= 10
Small Denomination Time Deposits= 1,200
Money MKT Mutual Fund Shares= 500
Over Night Eurodollars= 20
Over Night Repurchase
Agreements at Commercial Banks= 65
Available Credit on Credit Cards= 900
Large Time Deposits= 2,500
Refer to the above table. The value of M1 is
A) $760 billion.
B) $810 billion.
C) $1,260 billion.
D) $2,560 billion.
To find the value of M1, we need to add up the following components:
1. Currency: $150
2. Coins: $50
3. Transaction Deposits: $600
4. Traveler's Checks: $10
Adding these numbers together, we get:
150 + 50 + 600 + 10 = $810
Therefore, the value of M1 is $810 billion.
Option B) $810 billion is the correct answer.
To calculate the value of M1, we need to add up the liquid assets.
Liquid assets include:
- Currency and coins: $150
- Transaction deposits: $600
- Traveler's checks: $10
Total liquid assets = $150 + $600 + $10 = $760
Therefore, the value of M1 is $760 billion.
Option A) $760 billion is the correct answer.