ECONOMICS
AT A GLANCE
Figure 15.9
AT A GLANCE
Major Components of the Money Supply
Components of the
Money Supply
Traveler’s Checks $8
Other Checkable Deposits
+
$255
Demand Deposits
= M1 = $1,117 billion
= M2 = $5,146 billion
$312
Coins and Currency
$542
Retail Money Market Funds
$991
Small Denomination Time Deposits
$1,045
0
,00
$2
0
,80
$1
0
,60
$1
0
,40
$1
0
,20
$1
0
,00
$1
00
$8
00
$6
00
$4
$2
00
$1,993
$0
Savings Deposits
Billions of Dollars
Source: The Federal Reserve System Statistical Release H.6, 2001
Using Graphs This figure shows the different components of the money supply that comprise M1
and the money supply components that have to be added to MI to get M2. What component
makes up the largest part of the money supply?