Table 29-1.The information in the table pertains to an imaginary economy.

-Refer to Table 29-1.What is the M2 money supply?
A) $125 billion
B) $296 billion
C) $351 billion
D) $431 billion

Question

Table 29-1.The information in the table pertains to an imaginary economy.
 
-Refer to Table 29-1.What is the M2 money supply?
A) $125 billion 
B) $296 billion 
C) $351 billion 
D) $431 billion

Quizplus · Accepted Answer

M2 money supply includes M1 (currency, demand deposits, and traveler's checks) plus savings deposits, small-denomination time deposits (CDs), and money market mutual fund shares. Adding up all the components in the given table, the M2 money supply is $351 billion.