Use the information below to answer the following question.
Fact 24.1.1
The information describes a hypothetical banking system. Assume that all banks are holding their desired reserves.

-Refer to Fact 24.1.1. The quantity of money as measured by M1 is equal to
A)$2,500.
B)$1,500.
C)$6,500.
D)$7,000.
E)$6,000.

Question

Use the information below to answer the following question.
Fact 24.1.1
The information describes a hypothetical banking system. Assume that all banks are holding their desired reserves.
 
-Refer to Fact 24.1.1. The quantity of money as measured by M1 is equal to
A)$2,500. 
B)$1,500. 
C)$6,500. 
D)$7,000. 
E)$6,000.

Quizplus · Accepted Answer

M1 includes currency in circulation and checkable deposits. The correct answer is $6,000, which is the sum of these components.

Use the Information Below to Answer the Following Question