In the economy there is $150 in cash and $225 in travelers checks. The amount of...
In the economy there is $150 in cash and $225 in travelers checks. The amount of M1 in this economy is $ ____ and the amount of M2 is $ ____ .
| 375; 375 |
| 150; 375 |
| 225; 150 |
| 150; 225 |
Homework Answers
1) 375,375
M1 = currency + checkable deposits including traveller's cheque
M2 = M1 + saving deposits
M1= 150+225= 375
M2= 375
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