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ECN 001B C01-C06 WQ 2025 Homework 5 - Money, Finance, and Inflation

Multiple fill-in-the-blank

Consider the U.S. monetary and financial data above. The data come from the FRED database (see below for the link). The numbers for savings and other liquid deposits are my calculations off the FRED data. Public debt held by the public is the total value of all the Treasury bonds held by the public. Retail money market funds are those held by individuals.  Total money market funds include those held by individuals and institutions (like retirement accounts). Calculate the following: M2 money supply on January 1, 2019 = [Fill in the blank], billion dollars M2 money supply on January 1, 2020 = [Fill in the blank], billion dollars M2 money supply on January 1, 2021 = [Fill in the blank], billion dollars Federal Reserve Economic Data | FRED | St. Louis Fed Links to an external site.

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To tackle this problem, first identify what M2 money supply comprises and what the dates refer to. - M2 is the broad money measure that includes M1 (currency in circulation plus checkable deposits) plus near money: savings deposits, small time deposits, and retail money market funds. It also includes other near-money components that are readily convertible to cash. - The dates given are January 1 of 2019, 2020, and 2021. The task asks for M2 on each of those dates, expressed in billions of dollars. Now, let’s consider how the numbers are determined in practice. - Step 1: From the FRED data for M2 (or for the components if you’re reconstructing from compone......Login to view full explanation

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