The Central Bank of a small country reports
Bank deposits and M1, M2
The Central Bank of a small country reports the following data
Accounts Billions of local currency
Small time deposits 1260
Money market mutual funds held by businesses 1290
Savings deposits 250
Money market deposits accounts 1500
Checkable deposits 896
Currency in circulation 340
Market value of stock market 1000
a. What is the value of M1? b. What is the value of M2? c. What will be the value of M1 100 units of currency are removed from the savings deposits and are held as cash? d. In this case, what will be the value of M2?

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