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Home / Questions / Remember that M1 includes Purse money of \$45, Jewelry box fund of \$100, and checking accou

# Remember that M1 includes Purse money of \$45, Jewelry box fund of \$100, and checking accou

"Remember that M1 includes Purse money of \$45, Jewelry box fund of \$100, and checking account funds of \$500. So answer to previous question asking the value for M1 was and still is \$645 since the sum of Purse money of \$45, Jewelry box fund of \$100, and checking account funds of \$500 is \$645. So, I asked you what the value of M2 was and is. You concluded that The total of the other components (\$45 + \$100 + 1,200 + 800) equals \$2,645; however, there is nothing in the list that is \$800. Shouldn't M2 include M1(i.e., Purse fund of \$45, Jewelry box fund of \$100, Checking account fund of \$500), Money Market mutual fund of \$1,000 and savings account fund of \$1,200? So M2 should be \$2,845 since \$45 + \$100 + \$500 + \$1,000 + \$1,200. Right?"
"How did you get \$800 in (\$45 + \$100 + \$1,200 + \$800) equals \$2,645 ?
M2 consists of everything in M1, plus savings deposits, small time deposits (under \$100,000), and money-market mutual funds. The only item on the list that is not part of M2 is the value of General Electric stock. The total of the other components (\$45 + \$100 + 1,200 + 800) equals \$2,645"

Nov 10 2017 View more View Less