Given the Following Information, What Are the Values of M1

question 184

Multiple Choice

Given the following information, what are the values of M1 and M2? Small time deposits
$650 billion
Demand deposits and other checkable deposits
$300 billion
Savings deposits
$750 billion
Money market mutual funds
$600 billion
Traveler's checks
$25 billion
Large time deposits
$600 billion
Currency
$100 billion
Miscellaneous categories in M2
$25 billion

• A)M1 = $400 billion, M2 = $2,475 billion.
• B)M1 = $125 billion, M2 = $3,025 billion.
• C)M1 = $425 billion, M2 = $2, 450 billion.
• D)M1 = $425 billion, M2 = $1,875 billion.

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Definitions:

Return on Investment

A financial performance measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit divided by the cost of the investment.

Investment Opportunity

An asset or item that can potentially generate a significant return or profit through appreciation, dividends, or interest.

Operations

The day-to-day activities involved in running a business, focusing on producing goods and services efficiently and effectively.

Variable Maintenance Costs

These are expenses that fluctuate in direct proportion to the level of activity or production, such as the costs of repairing machinery which increase with more intensive use.