Total value of corporate shares $500 billion Currency outside chartered banks $48 billion Chequable...

Total value of corporate shares	$500 billion
Currency outside chartered banks	$48 billion
Chequable notice deposits at chartered banks	$108 billion
Publicly held demand deposits at chartered banks	$51 billion
Federal government bonds	$643 billion
Other liquid assets included in M2+	$38 billion
Nonpersonal term and foreign-currency deposits at chartered banks	$274 billion
Personal term deposits at chartered banks	$140 billion
Non-chequable notice deposits at chartered banks	$100 billion
Chequable notice deposits at near banks	$95 billion
Personal term deposits at near banks	$120 billion
Non-chequable notice deposits at near banks	$80 billion

Based on this data calculate:

a) M1 +

b) M2

c) M3

d) M2+

Expert Solution

a) M1+: $48+$108+$51+$100+$95+$80 = $482 Billion.

Components	Amount (In Billion)
Currency outside chartered banks	$48
Chequable notice deposits at chartered banks	$108
Publicly held demand deposits at chartered banks	$51
Non-chequable notice deposits at chartered banks	$100
Chequable notice deposits at near banks	$95
Non-chequable notice deposits at near banks	$80

b) M2: $482(Total of M1)+$38+$120 = $640 Billion.

Components	Amount (In Billion)
Other liquid assets included in M2+	$38
Personal term deposits at near banks	$120

c) M3: $482(Total of M1)+$500+$643+$274+$140 = $2039 Billion.

Components	Amount (In Billion)
Total value of corporate shares	$500
Federal government bonds	$643
Nonpersonal term and foreign-currency deposits at chartered banks	$274
Personal term deposits at chartered banks	$140

d) M2+: $482(Total of M1)+ $38 = $520 Billion.

Components	Amount (In Billion)
Other liquid assets included in M2+	$38

Rahul Sunny answered 8 months ago

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