Answer to Question #8526 in Finance for Joan

Question

what will be the size of m1 money supply at the end of next year if currency grows by 10 percent

Answer 1

M1 = The total of all physical currency part of bank reserves + the amount in demand accounts ("checking" or "current" accounts).
If currency grows by 10 percent then M1 will be:
M1 = The total of all physical currency part of bank reserves*1,1 + the amount in demand accounts ("checking" or "current" accounts).