Which of the Following Statements Is False About M1 and M2

question 98

Multiple Choice

Which of the following statements is false about M1 and M2?

• A) M2 is a broader measure of the money supply than M1.
• B) M2 contains assets that are less liquid than those in M1.
• C) All the assets included in M1 are also included in M2.
• D) All the assets included in M2 are also included in M1.

---

Definitions:

Risk-as-feelings Hypothesis

The theory that people make decisions based on their emotional responses to risks, rather than through logical assessment of the risks and benefits.

Broaden-and-build Theory

A psychological theory suggesting that positive emotions expand one’s awareness and encourage novel, varied, and exploratory thoughts and actions.

Affect-as-information Hypothesis

A theory suggesting that individuals use their emotional states as information in making judgments and decisions.

Emotionally Affected

Experiencing an impact on one's mood or feelings due to an external event, situation, or interaction.