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.
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.
5 answers
wrong answer. The M1 money stock is the sum of three components. Which of the four components in the table are part of M1?
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.
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.
Based on the data above,
---is 61.11% of M1.
a. Currency
b. Demand Deposits
c. Other Checkable Deposits
---is 61.11% of M1.
a. Currency
b. Demand Deposits
c. Other Checkable Deposits
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.
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.
1 answer