Question

Answer the question on the basis of the following list of assets:1. Large-denominated ($100,000 and over) time deposits2. Noncheckable savings deposits3. Currency (coins and paper money) in circulation4. Small-denominated (under $100,000) time deposits5. Stock certificates6. Checkable deposits7. Money market deposit accounts8. Money market mutual fund balances held by individuals9. Money market mutual fund balances held by businesses10. Currency held in bank vaultsRefer to the above list. The assets that are not included in either M1 or M2 are:

Answer 1

Answer:

1. Large-denominated ($100,000 and over)

5. Stock certificates

Explanation:

M2 will be M1 PLUS NEAR MONEY

M1

Cash in form of currency (the Franklin, Lincon and Washington) (3) (10)

Cheking deposits (6)

NEAR MONEY

Savings deposist (2)

money market of securities, mutual funds and time deposists.

(4) (7) (8) (9)