question 1 points 3 physical cash: $600 savings account: $2,500 time deposit: $2,000 how much is the m - 2…
question 1 points 3 physical cash: $600 savings account: $2,500 time deposit: $2,000 how much is the m - 2 money supply? $600 $3,100 $5,100 $4,500
Answer
Answer:
$5,100
Explanation:
Step1: Recall M - 2 components
M - 2 includes physical cash, time deposits, and savings accounts.
Step2: Calculate M - 2
$600 (physical cash)+$2,000 (time deposit)+$2,500 (savings account)=$5,100