Determine the size of the M1 money supply using the following information

1. Determine the size of the M1 money supply using the following information.
Currency plus traveler’s checks $25 million
Negotiable CDs $10 million
Demand deposits $13 million
Other checkable deposits $12 million

Click here for the solution: Determine the size of the M1 money supply using the following information

Following are components of the M1 money supply at the end of last year

4. Following are components of the M1 money supply at the end of last year. What will be the size of the M1 money supply at the end of next year if currency grows by 10 percent, demand deposits grow by 5 percent, other checkable deposits grow by 8 percent, and the
amount of traveler’s checks stays the same?
Currency $700 billion
Demand deposits $300 billion
Other checkable deposits $300 billion
Traveler’s checks $10 billion

Click here for the solution: Following are components of the M1 money supply at the end of last year

Assume that a country estimates its M1 money supply at $20 million

8. Assume that a country estimates its M1 money supply at $20 million. A broader measure of the money supply, M2, is $50 million. The country’s gross domestic product is $100 million. Production or real output for the country is 500,000 units or products.

a. Determine the velocity of money based on the M1 money supply.
b. Determine the velocity of money based on the M2 money supply.
c. Determine the average price for the real output.

Click here for the solution: Assume that a country estimates its M1 money supply at $20 million