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

label Economics
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account_balance_wallet \$5

Dec 11th, 2015

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

Dec 11th, 2015

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Dec 11th, 2015
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Dec 11th, 2015
Oct 17th, 2017
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