##### Need economics help with Question 6 about checkable diposits

 Economics Tutor: None Selected Time limit: 1 Day

Dec 11th, 2015

Thank you for the opportunity to help you with your question!

In december 2004 checkable deposits owned by individuals and businesses were \$667 billion

Money market funds and other deposits in decmeber 2004 were \$ 713 billion

step by step calculation

a. M1 = currency held outside banks and travelerâ€™s checks + checkable deposits owned by

given

M1= \$1372 billion

travellers checks in circulation = \$8 billion

currency held by individuals and businesses = \$697 billion

checking deposits owned by individuals and business= x

So x= 1372-705(697+8)

x= \$667billion [ checkable deposits owned by individuals and businesses ]

b.

M2 = M1 + savings deposits + time deposits + money market mutual funds and other deposits.

Given

M2 = \$6422 billion

M1= \$1372 billion

time deposits = \$817 billion

saving deposits = \$3520 billion

Money market funds and other  deposits = y

y=M2-[M1+timedposits +saving deposits ]

y=  6422-[1372+817+3520]

y= 6422-(5709)

y=\$713 billion

Please let me know if you need any clarification. I'm always happy to answer your questions.
Dec 11th, 2015

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Dec 11th, 2015
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Dec 11th, 2015
Dec 9th, 2016
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