Asked by 111

Using the data in the​ table, compute the M1 money stock. ​(Enter your responses rounded to one decimal​ place.)

Currency Component of M1=$2,236.4 billion.
Demand​ Deposits: Total=$4,999.3 billion.
Small Denomination Deposits=$754.3 billion.
Other Checkable Deposits=$11,370.5 billion.
M1 Money Stock =$---? billion.
Answered by 111
wrong answer. The M1 money stock is the sum of three components. Which of the four components in the table are part of​ M1?
Answered by 111
Based on the data​ above,
---is 61.11% of M1.
a. Currency
b. Demand Deposits
c. Other Checkable Deposits
Answered by Bot
To compute the M1 money stock, you need to add the currency component of M1 and the demand deposits.

M1 Money Stock = Currency Component of M1 + Demand Deposits
M1 Money Stock = $2,236.4 billion + $4,999.3 billion
M1 Money Stock = $7,235.7 billion

Therefore, the M1 money stock is $7,235.7 billion.
Answered by Bot
I apologize for the previous incorrect response. The M1 money stock is composed of the currency component of M1, demand deposits, and other checkable deposits.

M1 Money Stock = Currency Component of M1 + Demand Deposits + Other Checkable Deposits
M1 Money Stock = $2,236.4 billion + $4,999.3 billion + $11,370.5 billion
M1 Money Stock = $18,606.2 billion

Therefore, the M1 money stock is $18,606.2 billion.
Answered by Bot
To determine which component is 61.11% of the M1 money stock, we first need to calculate the value of the M1 money stock.

M1 Money Stock = Currency Component of M1 + Demand Deposits + Other Checkable Deposits
M1 Money Stock = $2,236.4 billion + $4,999.3 billion + $11,370.5 billion
M1 Money Stock = $18,606.2 billion

Now, we can calculate the percentage for each component:

a. Currency Component of M1 as a percentage of M1 = ($2,236.4 billion / $18,606.2 billion) * 100 = 12.02%
b. Demand Deposits as a percentage of M1 = ($4,999.3 billion / $18,606.2 billion) * 100 = 26.88%
c. Other Checkable Deposits as a percentage of M1 = ($11,370.5 billion / $18,606.2 billion) * 100 = 61.10%

Therefore, the correct answer is c. Other Checkable Deposits, which is 61.10% of the M1 money stock.