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    What to Include when Calculating M1 and M2

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    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
    Traveler's checks 4.7

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    Solution Preview

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

    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