Question

Which of the following are included in M3?

$100 certificate of deposit (CD)
$300,000 savings deposit
$1,000 in traveler’s checks
$500 in your piggy bank

Answer 1

I know this isn't econ. but I kinda need some help and nobody goes on there for hours

Answer 2

@***[ISURU]*** do you have any idea?

Answer 3

Definitely there is savings deposit and travelers checks

Answer 4

Yeah, but M3 includes M2 and M2 includes M1 and M1 contains stuff like the money in your piggy bank

Answer 5

Here is what my text says

M1: The smallest, most liquid form of money; M1 includes checkable or demand deposits, travelers' checks, coins, and currency. Vault cash is not counted in the money supply because it has already been counted when it is deposited in the bank. It is not in circulation. When we talk about the money supply, this is usually the segment we are describing.

M2: This definition includes M1 plus savings and small (less than $100,000) time deposits. Time deposits must remain in the bank for a fixed length of time before they can be withdrawn. Other accounts less than $100,000 like money market deposit accounts and money market mutual funds are also counted in M2 and usually earn a higher interest rate than regular deposits. M2 is larger than M1 but less liquid.

M3: This definition includes M2 plus large ($100,000 or more) time deposits. M3 is even less liquid than M2 because the money must stay in the bank longer. An example of M3 would be a 5-year certificate of deposit or a savings bond (which are usually held for 7 years before maturity). M3 is no longer reported by the Federal Reserve but is included here to give M2 context.

Answer 6

thats a dilemma.
Im really not much of an expert

Answer 7

Thanks anyways

Answer 8

@riyaz it was all of them

Answer 9

Ha now everythings right