What is the dollar value of Jackie's assets that are considered part of M2?
Question:
$45 in coins and currency in her purse
A $100 bill in her jewelry box at home
$1,200 in a local savings account
$500 in a checking account (Jackie never carries her checkbook, however, because she has a debit card that is connected to the checking account.)
40 shares of General Electric stock, which currently sells for $20 per share
$1,000 in a money market mutual fund
$2,000 in a U.S. government bond that matures in five years
Answer:
Coin currency, money held by public, and checking are M1. M2 includes M1 + savings accounts and Non institutial money markets. I think a money market mutual fund is institutional but I am not sure.
Answer not including the mutual fund
so its $45 + $100 + $1,200 + $500 = $1,845
Answer including the mututal fund
$45 + $100 + $1,200 + $500 + $1,000 = $2,845
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