Answered: Part 2 - Practice- For each of the…

Principles of Economics 2e

2nd Edition

ISBN:9781947172364

Author:Steven A. Greenlaw; David Shapiro

Publisher:Steven A. Greenlaw; David Shapiro

Chapter27: Money And Banking

Section: Chapter Questions

Problem 24CTQ: The total amount of U.S. currency in circulation divided by the U.S. population comes out to about...

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Part 2 - Practice- For each of the following examples, identify if it is considered M1 money supply, M2 money supply, or not counted (NC) in the U.S. money supply.

1. A $20 bill given to you by your grandma

2. You have $400,00 equity in real estate

3. A $100 deposit in your savings account

4. A $20 gift card

5. $100 in your checking account

6. $10 trillin dollars of Zimbabwe currency

7. $50,000 in Amazon stock

8. $1,000 in a money market account

9. $1 Trillion in the U.S. Treasury

10. A $300 certificate of deposit

11. Bitcoin worth $10,000

12. $20 bill in your pocket

Definition Definition Financial market that deals in securities or assets that are short-term in nature. The money market is responsible for keeping up the liquidity of the businesses and the organizations. These securities are usually held for a period of 12 months or less and are issued by institutions that require cash or funds for their short-term cash flow requirements. The money market is regulated by the federal government.

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