Question

M2 would include all of the following except (3 points) Question 6 options: 1) $5,000 in checkable deposits. 2) a $15,000 money market deposit. 3) $2,000 in Traveler's checks. 4) $200 in your piggy bank. 5) a $125,000 money market deposit.

Answer 1

Answer:

4) $200 in your piggy bank.

As is not in the bank it will not be considered part of the money supply as it cannot be used for operation

Explanation:

M2 will be M1 (cvurrency, cheking deposit and traveler check) plus saving account, time deposits and money market deposits know as near-money

With that definition in mind we analize:

1) $5,000 in checkable deposits.  Yes inside M1

2) a $15,000 money market deposit. yes inside M2

3) $2,000 in Traveler's checks. Yes, inside M1

5) a $125,000. money market deposit yes inside M2