Asset Amount(Billions of Dollars)
Currency and Coins not in bank vaults
1200
Savings Deposits 1300
Checkable Deposits 1000
Small Time Deposits of less than $100,000 4000
Credit Card Balances 1400
Stock and Bond Mutual Funds 100
Traveler's Checks 20
Nonbank Public Holdings of US Savings Bonds 45
Calculate M1.
Calculate M2.
Suppose Aunt Sophie transfers $1,000 from her checking account to her savings account. What happens to the value of M1 and to M2?
Suppose Uncle Nacho sells shares of Time Warner stock for $20,000 and puts the proceeds from the sale into his passbook savings account. What happens to the value of M1 and to M2?
Why aren't debit card balances included in M1 or M2?
Why aren't credit card balances included in M1 or M2?
Currency and Coins not in bank vaults
1200
Savings Deposits 1300
Checkable Deposits 1000
Small Time Deposits of less than $100,000 4000
Credit Card Balances 1400
Stock and Bond Mutual Funds 100
Traveler's Checks 20
Nonbank Public Holdings of US Savings Bonds 45
Calculate M1.
Calculate M2.
Suppose Aunt Sophie transfers $1,000 from her checking account to her savings account. What happens to the value of M1 and to M2?
Suppose Uncle Nacho sells shares of Time Warner stock for $20,000 and puts the proceeds from the sale into his passbook savings account. What happens to the value of M1 and to M2?
Why aren't debit card balances included in M1 or M2?
Why aren't credit card balances included in M1 or M2?