Purchase Solution

What to Include when Calculating M1 and M2

Not what you're looking for?

Ask Custom Question

Given the following information for November 2010, calculate the amounts of M1 and M2 in November 2010. The amounts are in billions of dollars.

Currency $915.0
Demand deposits 507.0
Money market mutual 711.1
funds (retail only)
Other checkable deposits 405.2
Savings deposits, including 5,317.9
money market deposit accts
Small-denomination time 943.3
Deposits
Traveler's checks 4.7

Purchase this Solution
Solution Summary

This solution shows what to include in calculations of the money supply: M1 and M2. It gives a detailed example based on data from November, 2010

Solution Preview

M1 includes cash (currency), traveler's checks, demand deposits and other ...

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

View More Free Quizzes
Related BrainMass Solutions

  • Calculating velocity in elastic collisions.

    4961 Calculating velocity in elastic collisions. A ball of mass m1 = 31.00 grams moving at 15.20 m/s collides head-on with a stationary ball of mass m2 = 116.00 grams. The collision is elastic.

  • Calculating magnitude of tension and acceleration

    35477 Calculating Magnitude of Tension and Acceleration Please see the attachment for the diagrams. Explain how to breakdown the problems. 12. A 2.6 kg mass, m2, on a 33.6 degree incline is connected to a 4.2 kg mass, m1, on a horizontal surface.

  • Calculating maximum velocity, displacement and stretch

    35167 Calculating maximum velocity, displacement and stretch The pair of blocks, which are connected by a cord, are released from rest when the spring is unstretched. The static and kinetic coefficients of friction are .2 and .1, respectively.

  • Collision

    is elastic, we can apply the law of conservation of KE : ½ m1(u1)2 + ½ m2(u2)2 = ½ m1(v1)2 + ½ m2(v2)2 m1(u1)2 + m2(u2)2 = m1(v1)2 + m2(v2)2 .............(2) Solving (1) and (2) for v1 and v2 we get : v1 = (m1 - m2)u1/(m1+m2) + 2m2u2/

  • Calculating reserves, monetary base, and M2

    The near monies added to M1 to derive M2 include savings deposits, certificates of deposit, money market deposits, and money market mutual funds.

  • Given mass, zero friction, mass of a projectile, direction and speed, find the recoil speed.

    With what speed does the hockey player recoil? I need to see each step and formula to solve this question. Denote by M1 and M2 the mass of the ice hockey player and bowling ball, respectively. So, M1=78kg and M2=6kg.

  • Trends in Currency Circulation

    Complete the table by calculating M1, M2, currency in circulation as a percentage of M1, and currency in circulation as a percentage of M2.

  • Speed of Blocks on an Incline

    Now the mass m1 is pulled down the incline a distance h from the equilibrium position and released. What is the speed of both blocks when they pass through their equilibrium points?

  • Demand Deposit

    Thus it does not include saving deposits if we consider M1 money supply. Definition of The M2 Money Supply: M2 is a measure of total money supply. M2 includes everything in M1 and also savings and other time deposits.

View More Related Solutions