The Table Given Below Shows the Components of Money Supply

question 52

Multiple Choice

The table given below shows the components of money supply in an economy.
Table 12.1
$\begin{array}{|l|c|}\hline {\text { Money Component }} & \text { Amount (in millions) } \\\hline \text { Currency } & \$ 550 \\\text { Travelers' Checks } & \$ 20 \\\text { Savings Deposits } & \$ 180 \\\text { NOW Accounts } & \$ 185 \\\text { Small-Denomination Time Deposits } & \$ 620 \\\text { Retail Money Market Mutual Funds } & \$ 605 \\\text { ATS Accounts } & \$ 180 \\\text { Demand Deposits } & \$ 210 \\\hline\end{array}$
-Refer to Table 12.1 and calculate the value of M2.

• A) $1,145
• B) $1,325
• C) $1,750
• D) $2,550
• E) $2,815

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Definitions:

Idiographic

An approach focusing on the individual, emphasizing personal, unique features and differences rather than generalizing across a population.

Theoretical

Based on or using the ideas and abstract principles underlying a subject, rather than its practical aspects.

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The degree to which a study's findings can be applied to other contexts and different individuals.