Economics: Principles, Problems, and Policies, 19th Edition

by McConnell, Campbell R.; Brue, Stanley L.; Flynn, Sean M.

Published by McGraw-Hill Education

ISBN 10: 0073511447

ISBN 13: 978-0-07351-144-3

Chapter 31 - Money, Banking, and Financial Institutions - Problems - Page 654: 1b

Answer

$M2 = 2,880$ million dollars

Work Step by Step

M2 = M1 + savings deposits + small-denominated time deposits + retail MMMFs We are given: M1 = 2240 Savings deposits (including MMDAs) = 140 Small time deposits (<100k) = 100 MMMFs held by individuals = 400 We determine M2: M2 = 2240 + 140 + 100 + 400 = 2880 million dollars M2 = $2,880 million

Update this answer!

You can help us out by revising, improving and updating this answer.

Update this answer

After you claim an answer you’ll have 24 hours to send in a draft. An editor will review the submission and either publish your submission or provide feedback.