Question: Q2: Assume that the following asset values (in million dollars) exist in Bahrain: Currency in commercial banks = BD 85; Saving deposits including money market deposit accounts = BD 98; Checkable deposits = BD 115; Corporate bonds BD 47; Money market mutual funds held by individual = BD 448; Coins in circulation = BD 24; small denominated (less than 100,000)Show transcribed image text 100% (1 rating)Money supply :: The money supply is divided into 1) M1 money supply 2) M2 money supply based on the liquidity. Liquidity…View the full answerTranscribed image text: Q2: Assume that the following asset values (in million dollars) exist in Bahrain: Currency in commercial banks = BD 85; Saving deposits including money market deposit accounts = BD 98; Checkable deposits = BD 115; Corporate bonds BD 47; Money market mutual funds held by individual = BD 448; Coins in circulation = BD 24; small denominated (less than 100,000) time deposits BD 107; time deposits = BD 74; Federal reserve notes in circulation = BD 1005; Iron ore deposits = BD 60; saving deposit time = BD 21. Required: Calculate the component of M2 in Bahrain
