Fact 24.1.1
The information describes a hypothetical banking system. Assume that all banks are holding their desired reserves.
Actual reserves in banking system $1,000
Total chequable deposits $5,500
Securities held by chartered banks $1,000
Currency outside banks $500
Refer to Fact 24.1.1. The quantity of money as measured by M1 is equal to
a. $1,500.
b. $6,000.
c. $2,500.
d. $6,500.
e. $7,000.