QuestionSuppose currency held outside banks is $\$ 230$ billion, and M1 is $\$ 500$ billion.
Do we know for sure how much checkable deposits equal? Yes, because to calculate checkable deposits, we simply need to add $\$ 230$ billion to $\$ 500$ billion. Yes, because to calculate checkable deposits, we simply need to subtract $\$ 230$ billion from $\$ 500$ billion. No, because to calculate checkable deposits, we also need to know the amount in traveler's checks. No, because to calculate checkable deposits, we also need to know the amount in money market mutual funds.