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Answer to Question #9285 in Economics of Enterprise for Sarah
Question #9285
determine the size of the demand deposits components of the M1 money supply using the following information....
currency.... 350 billion
traveler's checks.... 10 billion
other checkable deposits.... 200 billion
small time deposits.... 100 billion
M1 money supply.... 800 billion
currency.... 350 billion
traveler's checks.... 10 billion
other checkable deposits.... 200 billion
small time deposits.... 100 billion
M1 money supply.... 800 billion
Expert's answer
Demand deposit = M1 – currency-traveler`s checks- other checkable deposits- small time deposits
Demand deposit = 800-350-10-200-100= 140 billion
Demand deposit = 800-350-10-200-100= 140 billion
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