Question : 71) In December 2009, currency was $400 billion, traveler’s checks : 1238078

71) In December 2009, currency was $400 billion, traveler’s checks were $5 billion; checkable deposits owned by individuals and businesses were $600 billion, saving deposits were $2,00 billion, time deposits were $1,500 billion; and money market funds were $1,200 billion. What was the M1 in December 2009?

A) M1 = $405 billion

B) M1 = $1,005 billion

C) M1 = $3,005 billion

D) M1 = $3500 billion

E) M1 = $3505 billion

72) If Joe withdraws a $100 bill from his checking account and Jack deposits another $100 bill in his savings account, by how will M1 and M2 change?

A) M1 will decrease, but M2 will remain the same.

B) M1 will increase, and M2 will increase.

C) M2 will decrease by $100.

D) Both M1 and M2 will remain the same.

E) M1 will remain the same, and M2 will increase.

73) Susan just sold her text books for $200 cash and deposited the cash she received in her checking account. This transaction has

A) increased the quantity of M1.

B) decreased the quantity of M1.

C) increased the quantity of M2.

D) decreased the quantity of M2.

E) not changed either M1 or M2.

74) M2 consists of

A) M1 plus traveler’s checks.

B) M1 plus saving deposits, small time deposits, and money market funds.

C) M1 plus checkable deposits.

D) M1 plus currency at the banks.

E) M1 plus Federal Reserve notes.

75) Which of the following are included in the M2 definition of money?

A) currency outside of banks and checkable deposits

B) currency outside of banks and credit lines on credit cards

C) time deposits and the value of prime grade bonds

D) currency both inside and outside of banks

E) currency inside of banks and banks’ reserves

76) If we look at the components of M2, we find that

A) money market funds are the largest component.

B) savings deposits are the largest component.

C) currency is the largest component.

D) banks’ reserves are the largest component.

E) loans are the largest component.

77) In December 2009, currency outside of banks was $400 billion, traveler’s checks were $5 billion; checkable deposits owned by individuals and businesses were $600 billion, saving deposits were $2,000 billion, time deposits were $1,500 billion; and money market funds were $1,200 billion. What was the M2 in December 2009?

A) M2 = $5,705 billion

B) M2 = $3705 billion

C) M2 = $1,005 billion

D) M2 = $2,505 billion

E) M2 = $5,700 billion

78) If currency outside of banks is $800 billion; traveler’s checks are $10 billion; checkable deposits owned by individuals and businesses are $700 billion; savings deposits are $4,000 billion; small time deposits are $1,000 billion; and money market funds and other deposits are $800 billion, then M2 equals ________ billion.

A) $7,310

B) $5,800

C) $2,510

D) $1,510

E) $710

79) The above table has information about the hypothetical economy of Robotica. Based on the data, the size of M1 is

A) $610 billion.

B) $1,510 billion.

C) $600 billion.

D) $1,110 billion.

E) $2,600 billion.

80) The above table has information about the hypothetical economy of Robotica. Based on the data, the size of M2 is

A) $2,600 billion.

B) $2,610 billion.

C) $610 billion.

D) $600 billion.

E) $1,710 billion.