Refer to the Accompanying Table

question 138

Multiple Choice

$$\begin{array} { | l | c | } \hline { \text { Item } } & \text { Billions of Dollars } \\\hline \text { Checkable Deposits } & \$ 598 \\\hline \text { Small Time Deposits } & 818 \\\hline \text { Currency } & 644 \\\hline \text { Money-Market Mutual Funds Held by Businesses } & 1,045 \\\hline \text { Savings Deposits, Including Money-Market Deposit Accounts } & 2,866 \\\hline \text { Money-Market Mutual Funds Held by Individuals } & 979 \\\hline\end{array}$$ Refer to the accompanying table. The size of the M1 money supply is

• A) $1,242 billion.
• B) $598 billion.
• C) $644 billion.
• D) $2,060 billion.

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Definitions:

Commercial Bank

A commercial bank is a financial institution that offers a range of services including accepting deposits, providing loans, and offering investment products to individuals and businesses.

Liability

A financial obligation or responsibility that an individual or entity owes to another, which is required to be settled in the future.

Required Reserve Ratio

The fraction of deposits that banks are required to hold in reserve and not lend out.

Checkable Deposits

Bank account balances that can be easily withdrawn or used for payments through checks, debit cards, or electronic transfers.