Identify whether each of the following amounts is counted in M1 only, M2 only, both $M1$and $M2$, or neither.

a. $\backslash (50$billion in U.S. Treasury bills

b. $\backslash )15$billion in small-denomination time deposits

c. $\backslash (5$billion in traveler's checks not issued by a bank

d. $\backslash )20$billion in money market deposit accounts

Following table shows the components of M1 measureof cash supply -
Table$1$Following table shows the components of M2 measureof cash supply Table 2

Following table shows the components of $M2$ measure of cash supply Table $2$

(a) As Table $1$ and a pair of shows that U.S. Treasury bills isn't a part of either $M1$or$M2$.
Therefore, $\$50$ billion in U.S. Treasury billsare counted in neither.

(b) As Table $2$ shows that Small-denomination time deposits are a part of only$M2$.
Therefore, $\$15$ billion in small-denomination time deposits are going to be counted in $M2$only.

As Table $1$ and a pair of shows that Traveler's checks are a part of both $M1$and$M2$.
Therefore, $\$5$ billion in traveler's checks are going to be counted in both $M1$ and $M2$.

(d) As Table $1$ and a couple of shows that money market deposit accounts isn't a part of either $M1$or $M2$. Therefore, $\$20$ billion in securities industry deposit accountsare going to be counted in neither.