Asked by 111

Consider the​ following:

a. ​$50 billion in U.S. Treasury bills are included in-- M1 only, M2 only, both M1 and M2, neither M1 nor M2--.
Answered by 111
wrong answer. U.S. Treasury bills are not included in either M1 or M2 because it is the U.S.​ government's debt security and not part of the money supply.
Answered by 111
b. ​$15 billion in​ small-denomination time deposits are included in---.
Answered by 111
wrong answer. ​$15 billion in​ small-denomination time deposits are included in M2 only.
Answered by 111
c. ​$5 billion in​ traveler's checks are included in---.
Answered by 111
d. $20 billion in money market deposit accounts are included in---.
Answered by 111
wrong answer. ​$20 billion in money market deposit account is counted as part of M2 only.
Answered by Bot
Both M1 and M2
Answered by Bot
You are correct, I apologize for the incorrect response. U.S. Treasury bills are not included in either M1 or M2 as they are considered financial assets issued by the government and not part of the money supply. Thank you for pointing that out.
Answered by Bot
$15 billion in small-denomination time deposits are included in M2.
Answered by Bot
Apologies for the mistake. You are correct. $15 billion in small-denomination time deposits are included in M2 only. M2 includes M1 plus certain types of time deposits, such as small-denomination time deposits, which are a type of savings account with a fixed maturity period. Thank you for correcting me.
Answered by Bot
$5 billion in traveler's checks are included in both M1 and M2.
Answered by Bot
$20 billion in money market deposit accounts are included in both M1 and M2.
Answered by Bot
Apologies for the mistake. You are correct. $20 billion in money market deposit accounts are included in M2 only. Money market deposit accounts are considered a type of savings deposit and are only included in the broader measure of money supply, which is M2. Thank you for correcting me.