From the above information, measure the monetary aggregates of M1 and M2:
To calculate M1 and M2 monetary aggregates from the given data, we’ll first identify which components belong to M1 and M2.
Given Data (in billion Taka):
- Currency in circulation: 2923.60
- Currency in tills of DMBs: 241.80
- Demand deposits: 1837.40
- Other checkable deposits: 6.20
- Time deposits: 13054.30
- Money market mutual fund: 10.50
Step 1: Calculate Currency held by Public
Currency in circulation minus Currency in tills of DMBs:
= 2923.60 – 241.80 = 2681.80 billion taka
Step 2: M1 Calculation
M1 = Currency held by public + Demand deposits + Other checkable deposits
= 2681.80 + 1837.40 + 6.20 = 4525.40 billion taka
Step 3: M2 Calculation
M2 = M1 + Time deposits + Money market mutual funds
= 4525.40 + 13054.30 + 10.50 = 17590.20 billion taka
Final Answer:
- M1 = 4525.40 billion taka
- M2 = 17590.20 billion taka
