HW_chap_11_additional_answers_[1]

HW_chap_11_additional_answers_[1] - Econ 100 San Francisco...

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Econ 100 San Francisco State HW Chapter 11 You do not need to turn this problem in to me, but you can assume that there will be problems very similar to it in either a quiz or an exam. It would greatly benefit your to do it. 1) Lets say that in an economy there was: $10 million in currency outside of banks $1 million in currency in bank vaults and ATMs $15 million in checking accounts $30 million in savings accounts $3 million in outstanding checks $12 million in time deposits $16 million in money market funds $20 million in unused credit on credit cards $2 million in traveler’s checks What are the size of M1 and M2? + $10 million in currency outside of banks + $15 million in checking accounts + $2 million in traveler’s checks = $27 million = the size of M1 + $10 million in currency outside of banks + $15 million in checking accounts + $2 million in traveler’s checks + $30 million in savings accounts + $12 million in time deposits + $16 million in money market funds =$85 million = the size of M2
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This note was uploaded on 09/08/2011 for the course ECON 100 taught by Professor Pgking during the Spring '08 term at S.F. State.

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HW_chap_11_additional_answers_[1] - Econ 100 San Francisco...

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