Which of the Following Statements Is True About M2

question 52

Multiple Choice

Which of the following statements is true about M2?

• A)Its total value is smaller than that of M1.
• B)Apart from those assets also included in M1, it includes no assets that offer check-writing features.
• C)Its total value is about five times as large as M1.
• D)It includes large-denomination time deposits.

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Definitions:

Utility Function

A mathematical representation of a consumer's preference ordering over a set of goods and services, showing the satisfaction level from consumption.

Consumption Of X

The act of using up a particular resource X or the amount of X that is used.

Units Of Y

A generic term for the measurement used to quantify the output in a given economic or mathematical model.

Utility Function

An economic model that describes how consumers rank different bundles of goods according to the levels of satisfaction or utility those bundles provide.