I. Measures of Money Supply: Q. 1. Suppose the country X has the following monetary asset information as of year 2010: Cash in hands of
I. Measures of Money Supply: Q. 1. Suppose the country X has the following monetary asset information as of year 2010: Cash in hands of the public = $300]: (where 'b' represents billion) Demand Deposits (DD) = $4001) Other Checkable Deposits = $1501) Traveler 's checks = $50k! Savings Type accounts = $2000]: Money Market Mutual Funds (MM) = $ 1000b Small Time Deposits = $500]: Large Time Deposits = $450b (a) Calculate M1 for Country X (b) Calculate M2 for Country X (c) Which item is not included in the calculations of M1 and W? 2. Given the following information, what would be the value of M1? Small time deposits $650 billi n heclcing deposits $300 billi n Savingstype accounts $350 billi . I oney market mutual funds $600 billi n 3 25 billi- I I aIge time deposits $600 billi n ashmhand $100 billion
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